Cable is a shade firmer in Asia after closing 0.7 percent lower - a resilient performance considering the outcome of parliament's amendment votes on Brexit - but a further fall towards 1.2900 looks viable as reality sinks in.
PM May now believes she has a mandate for 'plan B', if the Irish backstop is replaced with unspecified "alternative arrangements".
The government retains the right to maintain the no-deal Brexit as an option after two amendments to prevent it failed nL5N1ZT2CZ.
The EU is united that the Irish backstop is non-negotiable nL5N1ZT7K8 nS8N1XN00A, so it would appear that there has been no real progress.
May's slim majority gives her little wiggle room and the EU have never wavered from their stance, so it would seem the PM is stuck between a rock and a hard place.
GBP/USD would need to see signs of a viable deal to threaten the 1.3259/1.3295 zone, the October and September range highs.
GBP/USD is still up 2.6 percent in January and EUR/GBP off 2.8 percent, suggesting the good news may be priced in.
A test of the pivotal 1.2900 area, spanning 38.2 percent of the January bounce at 1.2909 and the 1.2894 21 DMA, looks viable.
gbp2 jan 30 Click here