GBP/USD seesaws as MPs highlight hard Brexit scenario, facilitate path for PM May

GBP/USD trades near 1.3160 at the initial Asian morning on Thursday. The pair initially stretched its Wednesday’s downturn forward after results of the indicative Brexit proposals supported fears of hard departure when PM Theresa May’s third proposal is also bearing mixed response before appearing for votes. However, rejection of indicative proposals also increased chances of May’s plan being accepted and hence some pullback took place recently.

During early Asian morning on Thursday, the British members of parliament (MPs) were jostling in the House of Commons to vote on eight different Brexit proposals. In the end, results showed all of them were rejected.

Having succeeded over the Letwin amendment that could end up allowing the parliament control over the Brexit, MPs proposed eight Brexit options ranging from a hard Brexit to customs union and also another referendum. However, all of which were rejected with closest divide over customs union and the highest rejection rate for the Efta and EEA proposal.

Previously, PM May offered to resign from her post if MPs back her third Brexit proposal, up for voting on Friday. However, her Irish alliance Democratic Unionist Party (DUP) is still likely to turn the proposal down saying they wouldn’t prefer the same deal as rejected previously.

Next up in the focus will be how PM May manages to garner support for her plan before tomorrow’s voting after MPs rejected the eight proposals.

At the economic front, the final reading of the US Q4 2018 gross domestic product (GDP) will be in limelight. The GDP annualized bears the consensus to soften to 2.4% from 2.6%.

GBP/USD Technical Analysis

GBP/USD has 1.3240 and 1.3280 are nearby resistances to clear ahead of aiming 1.3310 and 1.3380 whereas 50-day simple moving average (SMA) near 1.3080 becomes crucial downside support as a break of which highlights 200-day SMA level of 1.2980.