GBP/USD hits fresh session lows, bears eyeing a sustained break through 1.30 mark
| • Rising risk of a no-deal Brexit weigh/prompts some fresh selling on Tuesday.
• The UK PM May is leaning towards a no-deal Brexit over revoking Article 50.
• UK lawmakers said to plan a bill to stop no-deal Brexit and force an extension.
The selling pressure around the British Pound picked up the pace in the last hour, dragging the GBP/USD pair to fresh session lows and closer to the key 1.30 psychological mark.
The pair failed to capitalize on the overnight positive momentum, rather met with some fresh supply after the UK House of Commons voted against all four alternative Brexit plans, in what has been labelled 'indicative votes'.
With only 10 days left until the extended Brexit deadline of April 12, the latest rejection by the UK Parliament revived fears of a no-deal and turned out to be one of the key factors weighing heavily on the British Pound.
Meanwhile, the latest leg of a sudden fall lacked any obvious catalyst but followed the news, wherein the UK PM Theresa May is leaning towards a no-deal Brexit over revocation of Article 50.
In the latest development, UK lawmakers were said to plan a bill to stop no-deal Brexit and force May to request an extension to article 50. The bill - presented by the Labour MP Yvette Cooper, will now be debated in the Parliament on Thursday when MPs would also hold more indicative votes.
It would now be interesting to see if bears are able to maintain their dominant position or the pair continues finding some decent support near the very important 200-day SMA, which if broken might trigger some fresh technical selling and pave the way for additional near-term weakness.
Technical levels to watch
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