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  • GBP/USD currently trades close to the mid-point of Tuesday’s choppy price action that has seen prices swing between 1.3290-1.3390.
  • Markets are on tenterhooks for news of when the UK PM will visit Brussels to push for a Brexit deal.

GBP/USD has seen another choppy day of trade as the Brexit saga drags on and traders revise lower their expectations for the two sides to reach a deal on trade. The pair put in daily lows at 1.3290 before sharply reversing to highs of the day in the 1.3390s prior to the US equity cash open and has since traded within this range. As things stand right now, cable trades will daily losses of just over 0.2% or around 30 pips at close to 1.3340.

Brexit pessimism grows, but there is still hope

According to an EU source, EU Brexit Negotiator Michelle Barnier recently told a meeting of ministers that the chances of a deal are now very slim. Indeed, there have been no indications on Tuesday that the EU and UK have been able to close the gap at all on the issues of fisheries, state aid and level playing field, although GBP did find some support earlier on in the session on the news that the EU and UK have reached an agreement in principle on the Ireland/Northern Ireland Protocol.

But hopes that a deal can be reached linger; UK PM Boris Johnson preparing to travel to Brussels later on in the week in order to attempt to hammer out a deal with EU Commission President Ursula von der Leyen. With talk on both sides of the need to now intensify preparations for a no deal end to the transition period, this will meeting is likely to be the make or break moment of the negotiations. Ahead of this meeting, little else aside from Brexit will matter for GBP traders.