GBP/USD spikes to 1.3145 and retreats back to 1.3060 after UK Parliament rejects May’s deal
|- Pound remains steady after UK Parliament rejects May’s withdrawal agreement.
- A vote on a no-deal Brexit will take place on Wednesday.
The GBP/USD pair rose to 1.3147 after the UK Parliament rejected May’s Brexit deal by 391-242. It was the second defeat for May. The PM delivered a statement after the vote and confirmed there will be a vote on Wednesday on a no-deal and, if that fails, a vote on Thursday on extending Article 50.
The spokesman of Donald Tusk, President of the European Council, said the EU will consider any request to delay the deadline if a "credible justification" is presented.
The pound trimmed losses initially against the US dollar but then headed lower back to the level it had before the vote. The GBP/USD pair is about to end the day hovering around 1.3050/1.3080, down almost a hundred pips for the day. Earlier today peaked at 1.3287 but then turned sharply lower. The Brexit drama is likely to keep Pound’s gains limited and to favor volatility.
GBP/USD Levels to watch
To the upside, a consolidation above 1.3100 would clear the way to a test of the next resistance at 1.3145. Above the next resistance might be seen at 1.3190/95. On the flip side, the immediate support might lie at 1.3050, followed by 1.3000/10 (Mar 12 low) and 1.2965.
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