• +0.05% after closing up 0.3% with the U.S. dollar down 0.45%

• PM Starmer boosts defence spending on the eve of his Washington trip

• Millions of Britons face higher energy bills as price cap rises 6.4%

• Higher energy prices after strong Jan inflation will cap consumer spending

• Charts - 5, 10 & 21-day moving averages climb, as 21-day Bolli bands expand

• Daily momentum studies rise - a positive setup targets the 1.2787 200 DMA

• Last week's 1.2564 low and then the 1.2525 21 DMA are initial support

• Monday's 1.2690 2025 top, 1.2730 Dec 18 high are the first resistance
Andy

(Andrew Spencer is a Reuters market analyst. The views expressed are his own.)