GBP/USD’s Overhead Resistance Holds As Article 50 Extension Vote Passed

The below is the daily chart of the GBPUSD.  On Wednesday cable moved aggressively up to challenge overhead resistance around the 1.3360 level (red shaded horizontal). This move was prompted by Wednesday’s UK parliamentary vote which rejected a “no-deal” scenario with the EU. However, resistance has held. Last night was the third UK parliament vote for the week, where a majority voted in favour of an extension to the Brexit deadline.

The failure to break through resistance is noteworthy here. PM May now has parliaments backing to go back to Brussels to request an extension which would give her time to persuade the antagonists to her deal  and within her own party to change their minds. This is unlikely and now a lengthy postponement to Brexit is a possibility. This will be seen as a “kicking the can down the road” scenario. Thus, the uncertainty regarding Brexit remains and headline risk is still considered to be high.
GBPUSD

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.