Cable slips to session low on weaker pound

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD moves to a low of 1.2662 on the session

GBP/USD H1 13-06
The pound is still feeling a bit of a pinch since overnight trading after Labour's motion to block a no-deal Brexit outcome fell short in parliament yesterday. Tory MPs cheered the result, which is rather ironic given how little support they offered Theresa May under a similar scenario just months ago really.

But with the voting result yesterday, it basically paves the way for a new British PM to pursue a no-deal outcome if they so choose to.

Cable buyers tried to move back above the 200-hour MA (blue line) in trading earlier today but sellers remained firm in keeping the bearish near-term bias. That is leading to a further extension to the downside now with support around 1.2661 being tested. Further bids are only lined up around 1.2645-50 next.

As mentioned several times in the past, the Brexit equation hasn't changed one bit. The European Union is adamant on not renegotiating the withdrawal agreement, hence it's either parliament somehow finds a compromise on the current Brexit deal or we're headed towards a potential no-deal outcome.

If the new prime minister wants to avoid the latter, then a general election - which I see as being most likely - or a second referendum will be the other options.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose