Pound traders watch Supreme Court hearing against Parliament suspension.

The pound gave back gains as discussions between Boris Johnson and the outgoing EU President Juncker were little constructive. Although the leaders decided to intensify talks, the UK will likely remain in no mans land with the absence of legally operational solutions to reach a comprehensive Brexit deal in the foreseeable future. Meanwhile, the UKs Supreme Court will discuss the case against Johnsons most controversial suspension of parliament. If the MPs are allowed to return, expect a decent rally in the pound.

Otherwise, the pounds recovery should remain topped near the 1.25 mark against the US dollar. The downside correction could stretch to 1.2390, the minor 23.6% Fibonacci retracement on September rebound. But Cable will remain in the bullish consolidation zone above the 1.23 mark, which stands for the major 38.2% retracement.

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