- The rally in Sterling takes a breather on Monday.
- Cable comes down after fresh 2019 highs beyond 1.3200.
- Tuesday’s crucial vote on Brexit ‘Plan B” in centre stage.
After advancing to fresh yearly peaks above 1.3200 the figure, GBP/USD met a wave of fresh sellers and fell to the area of daily lows in the 1.3140/35 band.
GBP/USD all the attention on Brexit vote
The sharp up move in Cable appears somewhat interrupted at the beginning of the week amidst increasing cautiousness among investors in light of the imminent parliamentary vote on May’s Brexit ‘Plan B’.
In fact, the UK Parliament will vote tomorrow on PM May’s surrogate plan for the UK-EU divorce along with amendments put forward by several MPs, which mainly consist of postponing the key Article 50, solutions for the Irish backstop and preventing a no-deal scenario.
Therefore, GBP is expected to trade within a sideline mood as markets get closer to the Brexit discussions, although the final outcome remains largely unclear. It is worth noting that the recent and sharp rebound in Cable has been on the back of renewed optimism on a positive end to this novel.
GBP/USD levels to consider
As of writing, the pair is losing 0.23% at 1.3166 facing the next support at 1.3138 (low Jan.28) seconded by 1.3065 (200-day SMA) and finally 1.3001 (high Jan.17). On the other hand, a break above 1.3217 (2019 high Jan.25) would open the door to 1.3257 (monthly high Oct.12 2018) and then 1.3298 (monthly high Sep.20 2018).
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