GBPUSD corrects 50% of the huge gain higher. Bounces.

Technical Analysis

Author: Greg Michalowski | gbpusd

Votes on Article 50 extension today (with amendments first)

The GBPUSD  surge yesterday as lawmakers blocked a no-deal Brexit. That is all good and fine but they still need to come to a deal with the EU27. With the clock ticking, the votes today will help determine if the lawmakers want to apply for an extension of Article 50 until June 30th .  Before that, there will be some amendments to that vote.  Adam outlines those amendments here which includes to prepare for a 2nd referendum and one designed to block a 3rd meaningful vote on the May plan. Once again, what they decide ultimately has to be approved by the EU 27.  Tick. Tick. Tick. Despite the efforts to block a no-deal Brexit, there could be a no-deal Brexit anyway. 

Votes on Article 50 extension today (with amendments first)

The price action in the GBPUSD has been more corrective today, but with ups and downs (the pair settled at 1.3331 yesterday.  The low for the day extended to the 50% midpoint of the move up from the late Tuesday low at 1.32137.  The low reached just below that level at 1.3206 before bouncing. We are currently trading near the highs of the bounce at 1.3274.  

The next target on the topside is the 1.3286 level which was the swing high from Tuesday's trading. It is also the March 1 high. Yesterday, that high was broken and trended ultimately to the 2019 high at 1.33795.  Watch the 1.3286 level for sellers leaning. A move above will head toward a test of the highs for the day at 1.3330. 

Testing that 1.3286 right now.  Level to eye.

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