GBP/USD pulls ahead to post its highest level since 7 September
The pound is gaining some ground to start the session, rising to its highest levels in two months against the dollar as cable moves back above 1.3200.
The pair has been knocking on the figure level since trading yesterday but buyers are now making a play to establish further upside momentum in the pair.
Of note, daily price action also sees the pair move above the 61.8 retracement level @ 1.3174 and the 21 October high @ 1.3177.
There is some minor resistance from previous swing highs just above 1.3200 but keep a break above the figure level and buyers have a good platform to go potentially chase gains towards the 1.3400 level next.
That said, there are a couple of risk factors to look out for this week with Brexit being a key one to watch for the pound itself over the next few days.
The latest development is that the Lords rejected the government's clauses on the Internal Market Bill yesterday, so that may keep the peace in negotiations this week.
But the government has insisted that they will retable the same clauses again in the Commons, so that is unlikely to change how things are playing out in the big picture.
As such, it will still boil down to how talks progress in London this week. The same key outstanding issues are hindering any real breakthrough, so let's see if that changes.
Just be mindful that there needs to be some form of deal agreed upon by mid-November at the latest in order to have sufficient time for that to be ratified and implemented ahead of the 31 December transition period deadline.