GBPUSD Rudderless as PM May Loses Control of Brexit
GBP Price, News and Brexit Latest
- MPs vote to take control of Brexit – Will PM May listen?
- Sterling slips lower, but losses are limited for now.
Brexit Latest – Indicative Votes to be put to the House of Commons on Wednesday
MPs agreed last night to allow a series of indicative votes to be put before Parliament on Wednesday, opening the way for a potential soft Brexit. PM May lost the vote, and with it control of the Brexit process, after 30 Conservative MPs defied the whip and voted for the cross-party amendments by 329 to 302.MPs will now try and find a consensus on leaving the EU although the government has already said that they would not feel duty bound to any result, clouding the process further. Options that appear likely include a soft Brexit (Norway+), a second referendum or unilaterally revoking Article 50, while other political pundits are now saying that the chances of a General Election have increased as MPs tire of the PMs behavior.
Sterling moved lower in early trade, but losses remain limited and within recent trading ranges. While a no-deal Brexit is becoming less likely, the ongoing political drama is pushing some investors to the sidelines until the outlook becomes clearer. GBPUSD appears to have short-term support around 1.3150-13170 while trend support from the start of the year remains intact and kicks-in around 1.3075.
GBPUSD Daily Price Chart (July 2018 – March 26, 2019)
Retail traders are 50.2% net-long GBPUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. Recent changes in daily and weekly sentiment however currently suggest a mixed GBPUSD bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.