GBP/USD falls to a low of 1.2822 on the day

It's not that it wasn't unexpected but it basically puts the nail in the coffin in May's Brexit deal ahead of the meaningful vote tomorrow. European currencies are losing some ground to begin the session and is led by the fall in the pound. The euro has also fallen to 1.1450 levels against the dollar now.

Further support in cable is seen around 1.2800 before the 100-hour MA (red line) comes into play at 1.2777.

Ahead of tomorrow's vote, the pound is likely to stay pressured as May is seen losing the vote in parliament. However, if there is growing belief that she will call for an extension to Article 50, expect the pound to rise in the near-term.

At this stage, a no-deal outcome is looking to be pushed aside more and more, and that means the upside potential for the pound is slowly growing.