In absence of any fresh UK political headlines traders turned their attention to Fed minutes which failed to provide any support for the dollar. As a result, the pound recovered some ground.
The main scenario is a break above 1.2940 and a new leg higher afterwards.
An alternative scenario is a return to the 1.2850 level.
A further extension to 1.3010 will be possible when the pound overcomes 1.2940.
A close below1.2900 will generate fresh bearish signal to 1.2850.