Goldman Sachs on what it'll take for GBP to sustain its rally (spoiler - Brexit progress)

From GS on the negotiations and GNP

"tunnel" negotiations could sustain the rally

"If the two sides do make more progress toward a deal, continued short-covering from real money investors should prolong the rally"

"Despite the substantial rally, we think sterling has further to run, and reiterate our trade recommendation to go long GBP/USD with an initial target of 1.30"

The latest news we have is not so encouraging for the talks:

• Reports of little progress in weekend Brexit talks - deal by Oct 31 looks unlikely

• (From Saturday) - Brexit - DUP says North Ireland must stay in full UK customs union