Cable slips below overnight low as pound stays pressured on Brexit uncertainty

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD falls to a low of 1.3134 on the day, lowest since 13 March

GBP/USD H1 21-03
Price is looking to now sail past the overnight low of 1.3147 with light bids around 1.3120-25 seen next in line for the pair. Beyond that, further support is only seen around the 1.3100 handle. With price falling below the 200-hour MA (blue line) earlier today, sellers are now in near-term control of the pair.

The latest developments in the Brexit saga is that May's request for an extension to 30 June is set to be rejected with European leaders only willing to offer one to 22 May instead, in trying not to complicate things ahead of the European Parliament elections that will begin the following day.

Also, DUP lawmaker Sammy Wilson is out saying that they are nowhere near in supporting May's deal and is shifting the responsibility back on Tory lawmakers; requiring them to back the government before they are seen doing so themselves.

Hence, May has her work cut out for her with a smaller time frame to work with and as it stands, she can't even bring about a third meaningful vote as it would fail once again.

That said, regardless of the developments above, next Monday could see something more crucial that is if parliament decides to pass amendments that will help them wrestle more control from the government on the Brexit process.

There's still plenty of uncertainty surrounding the whole saga and that's not offering the pound a helping hand on the day.

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