GBP/USD extends losses and drops below 1.2700 as May speaks ahead of Brexit “meaningful vote”

GBP/USD drops further as the pound tumbles across the board.
Brexit deal being debated at the Parliament, vote on the deal expected around 20:00 GMT. May is speaking at Parliament.
The pound weakened sharply across the board and reversed from weekly highs.

Matías Salord FXStreet

The GBP/USD pair dropped further and bottomed at 1.2694, the lowest since January 4. The last leg lower took place as PM May’s speaks at the Parliament.

As of writing trades at 1.2700/10, under pressure and with the negative tone intact and uncertainty increasing.

Volatility is likely to remain high ahead of the vote on UK PM May’s Brexit deal at the Parliament. Lawmakers are expected to reject the deal. If a large majority votes against it, it could delay or create the conditions for a “hard” Brexit. Also, the opposition Labour Party will likely call a vote of no confidence.

GBP/USD Levels to watch

To the downside, support levels might be located at 1.2675/80, followed by 1.2645 (Jan 3 high) and 1.2615 (Dec 27 & Jan 4 low). On the upside, resistance levels could now be seen at 1.2735, 1.2800/05 (Jan 9 high) and 1.2865 (Jan 11 high).

GBP/USD

Overview:
    Today Last Price: 1.2718
    Today Daily change: -1.5e+2 pips
    Today Daily change %: -1.17%
    Today Daily Open: 1.2868
Trends:
    Previous Daily SMA20: 1.2708
    Previous Daily SMA50: 1.2763
    Previous Daily SMA100: 1.2893
    Previous Daily SMA200: 1.3118
Levels:
    Previous Daily High: 1.2931
    Previous Daily Low: 1.2818
    Previous Weekly High: 1.2866
    Previous Weekly Low: 1.2704
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Previous Daily Fibonacci 38.2%: 1.2888
    Previous Daily Fibonacci 61.8%: 1.2861
    Previous Daily Pivot Point S1: 1.2813
    Previous Daily Pivot Point S2: 1.2759
    Previous Daily Pivot Point S3: 1.27
    Previous Daily Pivot Point R1: 1.2926
    Previous Daily Pivot Point R2: 1.2985
    Previous Daily Pivot Point R3: 1.304

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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