GBP/USD jumps to 1.2760 but retreats back to 1.2730 currently
The pound got a bit of a jolt moments ago after the official ECJ ruling on Article 50 was announced and it basically just confirms what we heard last week; that Britain can unilaterally revoke Brexit if they so wish choose to.
Though the news isn't anything new, the headlines still generated a tiny pop in the pound as cable climbed to a high of 1.2760 before giving back those gains now. It was a good fade trade as prices respected key technical levels rather well. The jump higher saw price test the 200-hour MA (blue line) before falling back down.
Price now sits under the 100-hour MA (red line) again which indicates near-term bias remains more bearish. All the focus for the pound now is on tomorrow's meaningful vote - which still may be postponed mind you - and sentiment remains rather weak with the odds still stacked against Theresa May to pull off a win.
Given that, the pound is expected to stay pressured but be wary of headline risks that may come in the day ahead.
