GBP/USD has dropped hard on the back of a key vote of the Cooper amendment failing
|- GBP/USD has fallen within the day's range to fresh lows following the Copper amendment failing from 321 vs 298.
- GBP/USD is currently trading at 1.3075, reaching a low of 1.3064 from a high of 1.3200.
GBP/USD has dropped on a critical vote that has been thrown out by The Commons respecting the UK's electorate considering it could have been seen as a betrayal of what the public had voted for. Cooper wanted a six-month extension to the Brexit date - However, some MPs had favoured three months and it could be tabled again at a later date and likely win over more votes if the extension of Article 50 was reduced from six to three months instead.
Next up?
Meanwhile, we now await Brady's which is a key amendment which says that the UK can accept the Withdrawal Agreement if the backstop is replaced by 'alternative agreements' (without specifying what that may be). It is still unknown whether hard Brexiteers will support it (if not, the amendment will fail).
"Even if it passes, both the EU and Ireland have refused to reopen the Withdrawal Agreement several times, although it may be easier if they know it has backing from a majority in the UK House of Commons," analysts at Danske Bank argued.
GBP/USD levels
"We would allow for a retracement towards 1.3090/00 (intraday Elliott wave count) and the near term uptrend at 1.2950. While underpinned by the near term uptrend, it stays bid and we look for gains to the 55 week ma at 1.3297. Here we also find the July, September and October highs at 1.3258/1.3363. While we would allow for this to hold the initial test, there is scope for the June high at 1.3473 and the 200 week ma at 1.3650 slightly longer term," analysts at Commerzbank explained.
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