Pound erases losses for the day on chatter of possible Brexit compromise

Technical Analysis

Cable bounces from 1.2840 to 1.2920 levels currently

GBP/USD H1 01-10
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The pound is pretty much jumping all over the place this morning on Brexit headlines and it may very well continue that way until the weekend.

The latest update comes from FT reporter, Sebastian Payne, here who makes mention that officials in London are increasingly optimistic that a deal can be achieved.

Adding that:

“We’ve gone from about 30% chance of a deal to to the other way around. I think it’s almost certain we’ll enter the tunnel.”

That alongside a possible agreement on state aid – which had earlier been reported to be a sticking point – has seen the pound stage a rebound after consolidating around its 100-hour MA (red line) following the drop earlier in the session.

It’s up to anyone’s guess on what the next headline will read and where we will go from here. But there’s no doubt the pound is going to stay volatile ahead of the weekend.

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