GBP/USD eases to the lows for the day, with the low touching 1.3412
The dollar is keeping steadier for the most part and that is helping to see some push and pull in cable, but the pound is also failing to really get too excited ahead of the weekend after the hiccup from yesterday which saw 1.3500 rejected.
That came amid a flurry of Brexit headlines suggesting that a odds of a deal are "receding", as talks are likely to get dragged into the weekend.
I would argue that such a scenario presents some risks for pound traders, especially for those not wanting to hold key positions in fear of a Monday gap.
The price action in the past week suggests that this is a market itching to buy the pound, so there might be those willing to still bet on the odds of a breakthrough. But are they willing to take the risk of facing a gap at the open? I'm not too sure.
Either way, it may be tough to see the pound rally past daily resistance from the 1 September high @ 1.3483 and 1.3500 unless there are leaks of positive Brexit news.
But if talks are stretched to the weekend, then that might not come unless the dollar capitulates further. For now though, the greenback is holding its own so far today but remains in a vulnerable position in the bigger picture.
