GBP/USD loses the grip and drops to 1.2840 ahead of Brexit vote
|- Cable abandons multi-week tops above 1.2900 the figure.
- Broad-based bid tone around USD behind the knee-jerk.
- The House of Commons will vote on May’s deal later in the evening.
The renewed and generalized buying pressure around the greenback is now forcing GBP/USD to trade in the lower bound of the weekly range in the 1.2830 area.
GBP/USD only looks to Brexit
Cable is reverting two consecutive sessions with gains in response to a strong pick up in the demand for the greenback.
In fact, spot comes down after climbing as high as the 1.2930 region at the beginning of the week, levels last traded in mid-November 2018.
In the meantime, all eyes remain on the UK Parliament later today and the key vote on PM May’s Brexit plan, which is expected to fail, opening the door to further uncertainty and heightened volatility around GBP.
In case of a significant defeat, Theresa May would likely face a no confidence-vote sponsored by the Labour Party as well as increasing pressure to, eventually, step down.
GBP/USD levels to consider
As of writing, the pair is losing 0.17% at 1.2839 and a breach of 1.2819 (low Jan.14) would expose 1.2774 (55-day SMA) and finally 1.2699 (21-day SMA). On the other hand, the next hurdle is located at 1.2930 (2019 high Jan.14) seconded by 1.3072 (high Nov.14 2018) and then 1.3119 (200-day SMA).
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