EU raises problems
The pound took off last year when the EU and UK began to make progress on a Brexit deal. The divorce bill was largely settled.
At the same time, they decided to punt on some key issues like the Irish border and a transition deal.
Today, EU chief negotiator Michel Barnier called for UK counterpart Davis to come to Brussells for talks and that the EU will not accept UK demands on the transition period including the suggestion that its end date should be left open.
Barnier also said Britain's demands for its future relationship with the bloc are "illusory".
Meanwhile, something of a rebellion in Theresa May's conservative party is afoot with 8 members of her party calling for close ties to the EU after it leaves. That's enough to topple her majority.
Any time the snags in an agreement get back on the front page, it weighs on the pound. Cable has climbed 10 cents since September but a chunk of that could be wiped out if Brexit worries flare.
The wedge in GBP/USD already looks like it could be breaking.
