Now, this is where things start getting really interesting for cable and the pound. Are markets that confident about lawmakers being able to avert a no-deal Brexit?
The test of the swing region around 1.2290-10 is going to be a big tell about how traders will be positioned as we navigate through proceedings in the House of Lords.
Any further break beyond here sees little resistance before we reach 1.24-25 levels and that really opens up a big gap in terms of traders pricing out risks of a no-deal Brexit.
I'm still not entirely convinced that we've steered clear of any no-deal Brexit risks as there is still the European Union side of the equation to deal with as well as risks of a potential election or the Brexit bill failing to be turned into law.
As mentioned earlier, this would be a good area to look for shorts with a tight stop - from a technical perspective - but upon a break higher, it's all about sentiment thereafter.
Here's a look at the daily chart:
As seen there, a break above the 1.2310 level will see cable rise to five-week highs and leave little room in the way of a move potentially towards 1.2500. As the short squeeze continues to the upside beyond here, I wouldn't want to be one standing in the way just yet until political developments warrant for such a move.