Watching Brexit Talks

Cable has edged higher, steadying after Wednesday's bounce off intraday lows on the back of optimistic Brexit news. In case you missed it, BBG cited people familiar with negotiations that EU & UK envoys have made some progress on key sticking points this week and could clinch a deal by early Nov. Sources told BBG that the two sides are close to finalising the text of a draft agreement on state aid and have discussed possible mechanisms of enforcing the deal. It is worth noting that we are yet to see more concrete signs of progress, with negotiations set to resume in Brussels today.

• Scientists from Imperial College London suggested that England is failing to contain the spread of coronavirus and estimated that 960k people in the country are infected on any one day, while the reproduction number rose to 1.6 from 1.2 since the Oct 9 estimate.
• GBP/USD sits +10 pips at $1.2993. Bulls look for a break above Oct 27 high of $1.3080, which would open up Oct 21 high of $1.3177. Bears need a dip through Oct 28 low of $1.2977 before targeting Oct 14 low of $1.2863.
• EUR/GBP trades at GBP0.9039, 9 pips worse off. Losses past Oct 21 low of GBP0.9012 would expose Oct 14 low & bear trigger at GBP0.9007. Bulls need a clearance of Oct 23 high of GBP0.9107 before targeting GBP0.9149.
• GBP/JPY has added 31 pips and trades at Y135.75. Failure to close below Oct 16 low of Y135.42 disappointed bears yesterday, as they were hoping to see a double top formation. Bulls look to take out the 200-DMA at Y136.14 before taking aim at Oct 21 high of Y137.67. Conversely, a fall through Oct 28 low of Y134.89 would bring Sep 22 low of Y133.05 into view.