GBP/USD wobbled a bit on the back of a few Brexit related headlines yesterday. Theresa May held a cabinet meeting in the hope of getting some agreement on a draft deal and compromise on a plan for the Irish backstop. No decisions were made, but at least there were no walkouts. Ministers were also told to expect to be summoned again soon, at which point they may be asked to endorse a plan. As Dominic Raab left the meeting, he gave a thumbs up, which was enough to move GBP/USD a few points higher on the day. More generally, given there was no negative news arising from the meeting, hopes remain for a deal being drafted and completed soon, which in itself was enough to lend support to the pound. GBP/USD has since broken through the 1.3100 interbank figure, and it is holding gains for now after it touched an intraday high of 1.3175.
A weaker USD helped the Cable push through 1.3100 as well, which was a result of the Democrats taking a majority in the House and the Republicans holding the Senate in the American midterm elections, a definite blow to the Trump administration.
The technical levels to consider for today in the GBP/USD are 1.3118 on the downside and 1.3250 on the upside.