No confidence vote later today
The GBPUSD is squeezing higher after all the bad news (no-confidence vote, Brexit uncertainty) could not push the GBPUSD lower. Today, the low for the day, did take out the late day low from yesterday, but only by a few pips. That lack of momentum started a run back above the 1.2500 level. The corrective rally was on.
Technically, the price has moved back above a broken trend line at 1.25806. That is a close risk level/buying level now for the bulls. The 38.2% of the move down from last week's high comes in at 1.2614. That has been broken. Targets now include the high from yesterday at 1.2637 and the 100 hour MA and 50% retracement at 1.2652 and 1.2657 respectively.
The thought is that May will survive the no-confidence vote. If she does, she still could resign but that is not expected. All this does not stop the Brexit quagmire which still looms. The odds of a no-Brexit is increasing.
So in summary, the bullish horse has left the barn, but the rally is taking the price back to the technical levels that should give buyers some cause for pause (100 hour MA and 50%). A move back below the broken trend line will put sellers back in control (the rise will look like yesterday's failed run).
