GBP/USD: Sharp intraday turnaround falters ahead of mid-1.3100s, focus remains on Brexit vote

   •  News that Dominic Raab will back May's Brexit deal prompts some aggressive short-covering move.
   •  DUP maintained its position to vote against May's deal and kept a lid on any strong follow-through.

The GBP/USD pair rallied over 100-pips in the last hour and surged through the 1.3100 handle in the last hour, albeit quickly retreated few pips thereafter. 

Having dropped to the key 1.30 psychological mark, the pair witnessed a dramatic intraday turnaround amid rising hopes that the UK PM Theresa May might pull off an upset and get her Brexit deal pass through the Parliament.

Whispers that former Brexit Secretary Dominic Raab could possibly be supporting the UK PM Theresa May's Brexit deal seemed to have prompted some aggressive short-covering move around the British Pound.

This coupled with talks of Labour MPs potentially turning to vote with the Tories in order to get the withdrawal agreement further collaborated to the pair's sharp upsurge to an intraday high level of 1.3135.

However, the fact that the Northern Ireland's DUP maintained their position to not support the deal suggests that May might still fall short and lose by a slim margin of 10-20 votes and kept a lid on any strong follow-through.

The pair quickly retreated around 40-50 pips from session tops as the key focus remains on today's vote on the Brexit withdrawal agreement, this time without the Political Declaration regarding the future relationship with the EU. 

Technical levels to watch