GBP/USD on the defensive near 1.3150 ahead of UK’s Brexit Plan B vote

• Renewed Brexit optimism on UK PM May not ruling out re-opening Brexit negotiations, USD weakness lend support.
• Cable to retest 1.3220 on the UK Parliament vote on Brexit Plan B amendments?

The GBP/USD pair keeps its range trade intact around the midpoint of the 1.31 handle, as we progress towards the London markets, with the UK Parliament vote on Brexit Plan B amendments likely to headline.

UK Parliamentary vote on Brexit Plan B – Key

The markets have switched to the wait and see mode and refrain from placing any directional bets on the Pound ahead of the key vote. However, with the UK PM May not ruling out re-opening the Brexit negotiations with the European Union (EU), the buoyant tone around the GBP remains intact.

Valeria Bednarik, Chief Analyst at FXStreet noted: “The UK is running against the clock to clinch a Brexit deal, with the UK Parliament scheduled to meet again this Tuesday, to discover a series of amendments proposed by lawmakers, in an attempt to reach a satisfactory deal. Hopes now center on the possibility of limiting in time an Irish backstop, and/or extending the departure date, at the moment set for March 29.”  

Meanwhile, subdued trading activity seen around the US dollar across its main peers also helps keep the downside limited. The greenback remains on the back foot amid expectations of a dovish Fed and a drop in the US CB consumer confidence.   The  Conference Board Consumer  Confidence  Index is likely to decline to 124.9 in January from 128.1 in December.    

GBP/USD Technical Levels