Cable slips to session low on weaker pound
GBP/USD moves to a low of 1.2662 on the session
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.