GBP/USD: Buyers remain in power as UK parliament votes against government over Brexit
|- The British House of Commons vote in favor of the parliament taking control of Brexit over the government.
- Pound traders welcome decision as it reduces uncertainty.
The British Pound (GBP) seesaws around 1.3200 marks versus the US Dollar (USD) during early Tuesday. The GBP/USD pair is taking the bids as the UK members of parliaments (MPs) voted on various Brexit amendments. The first one giving the parliament an authority over government to take control of Brexit was welcomed by the Pound buyers as MPs have previously turned down all the proposal of the UK PM Theresa May and caused uncertainty over the Brexit.
GBP/USD previously took advantage of the US Dollar weakness on the US yield inversion (10 year over 3 month) that took place on Friday.
The Pound gained nearly 40 pips to 1.3220 after the MPs favor amendment A, also known as the Letwin amendment, which seeks to take control of parliament and hold indicative votes on Brexit options.
Initially, there were three amendments namely A, D and F were on the vote but opposition Labour party scaled back Amendment D that called on the government to give parliament time to find a majority for a different approach on Brexit.
The UK House of Commons is still to convey the final result of amendment F that gives the government the right to seek parliament approval on leaving without a deal if Britain comes within a week of doing so.
These amendments will pave way for voting on Wednesday in order to give meaningful Brexit direction ahead.
GBP/USD Technical Analysis
The GBP/USD pair needs a successful break of 1.3240 in order to aim for 1.3310 and 1.3380 otherwise 1.3170 and 50-day SMA near 1.3080 can keep limiting the quote’s immediate downside.
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