The date of official start of the Brexit procedure was finally confirmed on Monday.

UK Prime Minister, Theresa May, will trigger Article 50 of the Lisbon treaty on Wednesday 29th March and start the 2-year Brexit negotiation process with the EU. The timetable is in line with May’s plan to begin divorce process by the end of March.

Theresa May will formally notify the EU Council President, Donald Tusk, with a letter next Wednesday. Tusk is expected to present draft Brexit guidelines to the European Union’s 27 member states, within 48 hours of the UK triggering Article 50. The member states are expected to hold a Brexit summit within 4-6 weeks.

British pound was initially hit after the news were released and dropped around 100 pips against the US dollar, but fall was contained by strong technical support.

Sterling bounced back and hit new recovery high after being inflated by upbeat UK inflation data that offset initial Brexit fears.

Positive outlook has been re-established, as strong inflation data are boosting hawks on BoE’s MPC who already signaled possibility of early rate hike on last week MPC’s monetary policy meeting.

Cable is underpinned by a cluster of supports that maintain bullish near-term outlook and keep for now focus turned towards 1.2500/68 targets.

On the other side, stronger negative impact could be expected on bearish acceleration below 1.2300 zone that would risk further weakness and unmask key near-term support at 1.2107, mid-March trough.