EUR/GBP is the natural vehicle for Brexit trades.
The sudden resignation of Brexit Secretary David Davis and Brexit department minister Steve Baker, both Brexiters, knee-capped the early optimism stemming from Friday's cabinet agreement on Prime Minister May's plans to leave the European Union nL8N1U40XR.
EUR/GBP is little changed after reversing off 0.8810.
Later today, May meets the right-wing 1922 committee, whose members will also be very tough to get onside, so uncertainty currently dominates EUR/GBP in Asia.
Yet May did manage to strike a Brexit deal within her cabinet, which should help calm industry fears of a hard Brexit nL8N1U24NP.
The UK has a starting position for negotiations with the EU, which is a significant step forward nL8N1U408B and the proposals have been cautiously welcomed by the Irish and Austrian PMs nS8N1SB004.
While many major issues remain, and this is only the beginning of the real negotiation process with the EU, if May survives, it is a significant positive.
EUR/GBP trades towards the top of its 0.8620-0.8900 range, which has held since mid-March.
Current levels provide solid risk/reward for GBP bulls once the dust settles - above 0.8900, the trade is wrong however.
This should be a big week for the cross and PM May.
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