GBP/USD rises to a high of 1.2895

The pound is jumping a little higher to start the morning as European traders start to get involved in the action. Price eclipses the rebound high overnight of 1.2890 but resistance around the 1.2900 looms at the moment.

The sentiment remains that chances of a no-deal outcome is seen diminishing and Theresa May's government will win the no confidence motion later today, which would further increase the view that an extension of Article 50 would be on the way.

But much like yesterday, expect the quid to gyrate higher and lower throughout the session as more and more rumours flood in ahead of the vote later.

Update: And just like that, price falls back to 1.2875.