Cable still under the 1.3000 handle near flat levels on the day
For pound traders, it's all about the anticipation and the wait ahead of the vote on the second reading of Boris Johnson's withdrawal agreement bill today.
The vote takes place at around 1800 GMT and the pound is holding more calm as cable sits within a 30 pips range in trading so far.
Price is still keeping just below the 1.3000 handle as buyers hold back on the optimism for now, despite the feeling and momentum looking to side with Johnson ahead of the vote.
That said, it's going to be an extremely close one if the numbers are anything to go by and it would also not be too much of a surprise if Johnson loses the vote.
Breaking down the immediate consequences for the pound, it's pretty straightforward.
If the vote passes, that is another hurdle cleared for pound buyers and I reckon we'll see a jump above 1.3000 targeting levels around 1.3100 to 1.3200 potentially.
But the second hurdle of the amendments tomorrow still needs to be overcome for buyers to feel more safe. So, we could see some pull back and profit taking in lieu of that.
On the flip side, if the vote today fails, we're most likely headed towards a general election - assuming that a Brexit extension is approved.
However, with a minute chance of a no-deal Brexit and further uncertainty, it could reset the recent optimism in the pound back towards 1.2700 levels with sellers potentially eyeing the 1.2500 level as well.
