GBP/USD: Volatile within range near 1.3030 ahead of Brexit vote
- GBP/USD wavers in a 40-pips tight range, awaits fresh direction on Brexit vote.
- DUP's Wilson: No possibility of DUP changing its mind before vote
The GBP/USD pair is seen making yet another recovery attempt to regain the 1.3050 barrier, as the buyers continue to lurk just ahead of the 1.30 handle, keeping the downside limited.
The choppy trend in the spot seen over the last hours can be mainly attributed to the increased nervousness ahead of the UK Parliamentary vote on the UK PM May’s Withdrawal Agreement that sets May 22nd as the exit date.
The UK official Cox warned that if today’s vote gets rejected then the Brexit delay will expire on April 11th while the Goldman Sachs analysts said that there are higher odds of a snap general election called in if the vote is not approved.
Meanwhile, the downside appears cushioned amid upbeat UK Q4 final GDP and investment data releases. Although the risks remain skewed to the downside as markets continue to weigh in the latest comments from the Northern Irish Democratic Unionist Party (DUP) lawmaker Wilson. He reiterated that the party will be voting against May's withdrawal agreement and whispers of a possible DUP announcement later this afternoon.
Markets now remain focussed on the Brexit-related developments, with the volatility likely to be on the higher side around the UK currency, as the vote on the Withdrawal Agreement remains the key market driver amid a fresh batch of US economic news and Fedspeaks.
GBP/USD Technical Levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
