London (CNN Business) Happy Thursday. A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here.

The pound is climbing on news that the United Kingdom has reached a new agreement with the European Union to leave the bloc before the October 31 Brexit deadline.

The currency rallied on Thursday morning to just below $1.30, its highest level since May. It's now just below $1.29.

What's next: Time for everyone to pore over the details. Johnson still needs EU leaders to sign off on the deal on Thursday, and an extraordinary session of the UK Parliament is scheduled for Saturday.

Analysts believe the currency could jump as high as $1.35 or even $1.40 if Johnson wins support for a deal that avoids a chaotic Brexit that would rupture trade and economic ties. But potential stumbling blocks remain. A small political party from Northern Ireland is maintaining its opposition to the deal, raising doubts that it can successfully get through Parliament.

Read More