- The incoming Brexit-related headlines continue to influence the price action.
- Johnson confirms to push for election if MPs reject his fast-tracked timetable.
The GBP/USD pair momentarily slipped below the 1.2900 handle during the early North-American session, albeit quickly recovered few pips thereafter.
The pair witnessed a modest pullback on Tuesday as investors seemed inclined to lighten their bullish bets ahead of the key Brexit deal votes. The first vote on the UK Prime Minister Boris Johnson’s Brexit deal is scheduled at 18:00 GMT and if passed, will be followed by a discussion on the timetable for the Withdrawal Agreement bill.
Brexit headlines remain an exclusive driver
The sentiment deteriorated further after Johnson's spokesman said that there’s no guarantee of the European Union (EU) granting an extension. This now makes it even more important for the UK government to win Tuesday's vote in order to proceed to the next stage of legislation and get the Brexit done by October 31.
Meanwhile, the latest leg of a slide over the past hour or so could further be attributed to reports, indicating that if the UK lawmakers vote down the legislative timetable then the government will push for an election before Christmas. The news, confirmed by Boris Johnson, added a bit of uncertainty and exerted some additional downward pressure on the British Pound.
However, the fact that chances for the approval of the Withdrawal Act Bill (WAB) have been improving, the downtick lacked any strong follow-through selling and remained limited, rather attracted some dip-buying interest and helped the pair to quickly rebound around 30-35 pips from session lows.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates in daily range above 1.0600
EUR/USD struggles to gather directional momentum and continues to fluctuate above 1.0600 on Tuesday. The modest improvement seen in risk mood limits the US Dollar's gains as investors await Fed Chairman Jerome Powell's speech.
GBP/USD stabilizes near 1.2450 ahead of Powell speech
GBP/USD holds steady at around 1.2450 after recovering from the multi-month low it touched near 1.2400 in the European morning. The USD struggles to gather strength after disappointing housing data. Market focus shifts to Fed Chairman Powell's appearance.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.