Upside momentum was halted yesterday after Brexit risk hit

The pair managed to break above the 1.3250 level in overnight trading only to encounter Brexit risk as Germany is believed to have called Theresa May's Brexit plans 'unworkable' in a report here.

That saw cable come crashing down to touch a low of 1.3205. Since then, the pair consolidated around the 61.8 retracement level near 1.3214 and several tests below it found the low @ 1.3205 a bit tough to break below.

As buyers held on, the pair is moving higher today as the dollar weakens a little. The high today reached 1.3248 and ran into offers near the 1.3250 level once again. Other upside levels to watch out for are resistance at 1.3290-00 as well as 1.3315.

Meanwhile, downside levels for the pair sees bids around 1.3200 with support as mentioned at 1.3205. Meanwhile, further support is seen nearby at 1.3195 in the form of the 100-hour MA followed by the 200-hour MA @ 1.3179.

Those will be levels to look out for later when we have key risks on both sides of the pair's currency today.

For sterling, Brexit risk once again looms large as Theresa May looks to find a compromise on the customs deal she wants to push forward with. She'll be discussing it with Cabinet members at Chequers later today with the meeting slated to start at the top of the hour and possibly lasting through the night. Expect headline risks throughout the day and that will play a role in adding volatility to sterling pairs today.

Meanwhile, for the dollar we'll have the US jobs report due at 1230 GMT. Focus there is on wages again, but with the Fed seemingly a little more confident on inflation now and already sending a message of 4 rate hikes this year, I reckon the emphasis is now shifting more towards whether or not the overall report is good or bad and not just focusing on a single number anymore.

Those will be the two major risks for cable today. While headline risks are something we can't predict, we can always lean on technical levels to limit and define risk so use that to guide your trading today if you want to go about trading the pair.