Cable pares gains as pound falls on word of shorter extension date

Technical Analysis

Author: Justin Low | gbpusd

Cable dips back under the 1.3200 handle

GBP/USD H1 21-03
EU27 leaders are said to be looking at 22 May as the Brexit extension date rather than 30 June as requested by May and that is causing the pound to have a bit of a rocky start in European morning trade. Cable has fallen from 1.3210-20 levels to now just under 1.3190 currently.

The reasoning here is that EU27 leaders want to avoid political complications with the European Parliament elections set for 23 May.

But what this means is that it gives May less time to work out her Brexit strategy in the interim - if she even survives as prime minister up to that point. And considering that she's not anywhere near in succeeding so far, this puts the risk of either a no-deal Brexit or a revocation of Article 50 ever closer.

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