GBP/USD swings 50 pips over the last hour

The pair jumped to a high of 1.2797 before meeting resistance and offers and then tumbled back down to a low of 1.2747 on the day. Price now sits just above that in the 1.2750 levels.

There wasn't much other headlines leading to the surge apart from Irish prime minister Leo Varadkar stating that the European Union would be willing to offer written assurances to help Theresa May get her Brexit deal through a meaningful vote in parliament.

But as mentioned earlier, that's not really much of a change unless those assurances are legally-binding. Other than that, it won't be enough to convince parliament otherwise that the backstop will surely be only for a fixed period.

Cable's jump higher earlier saw it encounter daily resistance from the 5 September low @ 1.2786 as well as offers/swing region near 1.2800. That will remain the cap for the pair for the time being.

Meanwhile, for downside levels there is some minor support seen around 1.2745 and 1.2725 before the key hourly moving averages come into play @ 1.2691 (200-hour MA) and 1.2674 (100-hour MA).

Unless there is a significant change to the Brexit rhetoric, the pound still remains very much a sell-on-rallies play.