GBP/USD touches a high of 1.3340 currently
Davis' more conciliatory tone here means that there isn't much retaliation and uprising against UK PM May, and that is helping to give sterling bulls more relief with the fact that a softer Brexit is on the cards moving forward.
Looking at the daily chart:
Cable has bounced off the lows at the 38.2 retracement level @ 1.3055 and has steadily moved higher over the last two weeks of trading. Now, the 50.0 retracement level @ 1.3429 will be eyed next by buyers.
Without any challenges to May's authority and position, then for now the near-term trade will favour a more sterling positive nature. But when the reality hits (which wouldn't take long) - the fact that negotiations with the EU isn't going to be so straightforward even with a softer Brexit proposal - then expect sterling to encounter another stumbling block once again.
