The pound was well supported at the start of last week, reaching a high of 1.3365 vs. the dollar. However, it dropped and found support at the round number of 1.3100 as it looked like some tensions were growing between UK Prime Minister May and US President Trump. Trump had disapproved of May's Brexit policy and said it would threaten a trade deal between the US and the UK, weighing on GBP. He later went on to publicly apologize for his reported attack on UK PM May’s Brexit strategy and apparent support for Boris Johnson, saying a free trade deal was “absolutely possible,” and praising Theresa May as a “tough negotiator.”
On Sunday, during a live interview with the BBC, PM May revealed Trump’s big advice regarding Brexit. He told her that she should sue the EU over Brexit terms, and should not "go into negotiations," effectively pushing for an extreme, hard Brexit scenario. This Monday, the House of Commons will review the government's trade bill, and May hopes there won't be amendments to it. A clean vote that supports her strategy will likely help the pound well supported.
Looking ahead to economic data this week, we are due to average earnings and employment data on Tuesday, followed by CPI on Wednesday and Retail Sales on Thursday, so a busy week ahead for the pound.