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  • Pound retreats and trims gains after John Bercow announces he will step down as Speaker.  
  • Cable moves off highs, remains on top of 1.2300.  

The GBP/USD pair peaked earlier today at 1.2384, the highest level since late July and recently pulled back to 1.2314 before rebounding back to the 1.2350 area, where it trades at the moment, up 65 pips from Friday’s close.  

Bercow to resign, Pound falls but holds in positive territory  

The Pound lost momentum after approaching 1.2400 and spiked lower following the announcement of the speaker of the House of Commons on October 31. John Bercow, said he will resign if the UK votes for an election or he will remain until October 31. His position in the Parliament allowed key Brexit debates, including the one that blocked a no-deal last week. The mentioned bill received royal assent today. UK PM Johnson is expected to make a new bid to force an election later today.  

From the lows, GBP/USD managed to recover. At all times it held above 1.2300 and in positive territory. Still, the Pound remains among the top performers supported by UK data and an improvement in risk sentiment. Uncertainty around Brexit and UK politics continue to be the key driver.

Levels to watch  

On the flip side, the 1.2300 has become a key short-term support. A break lower would alleviate the bullish pressure. The next support is seen at 1.2240. On the upside, immediate resistance lies at 1.2380/85 (Sep 9 high / Jul 17 low).