GBP/USD edges lower, below mid-1.2900s ahead of key Brexit deal votes
|- Investors preferred to remain on the sidelines ahead of Brexit deal votes.
- A subdued USD price action does little to provide any meaningful impetus.
The GBP/USD pair lacked any firm directional bias on Tuesday and seesawed between tepid gains/minor losses through the mid-European session.
Following the recent upsurge to over five-month tops, the pair now seems to have entered a bullish consolidation phase and remained confined in a narrow trading band around mid-1.2900s ahead of a second reading of the UK Prime Minister Boris Johnson’s Brexit deal.
Focus remains on Brexit developments
Johnson will find out whether lawmakers are willing to back his plan and if passed, will be followed by a debate on the voting program. The government must win to proceed to the next stage of legislation and to get the Brexit done by October 31.
Nevertheless, the first vote, scheduled at 18:00 GMT, will play a key role in infusing a fresh bout of volatility across the GBP crosses. Given that chances for the approval of the Withdrawal Act Bill (WAB) have been improving, any pullback might still be seen as an opportunity to initiate some fresh bullish positions.
With the incoming Brexit-related headlines turning out to be an exclusive driver of the sentiment surrounding the Sterling, the price action seemed rather unaffected by a subdued US Dollar demand. Meanwhile, bullish traders are likely to wait for a sustained move beyond the key 1.30 psychological mark before positioning for any further near-term appreciating move.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.