GBP/USD: Firmer around 1-week high after UK PM Johnson loses the bid to general election

• GBP/USD takes the bids to one-week-high as chances of no-deal Brexit recedes.
• The UK Government fails to get support for a general election.
• The opposition party waits for the Royal Assent for further action after the victory.

With the receding odds for a no-deal Brexit, the GBP/USD remains firmer while taking the bids to 1.2255 at the start of Thursday’s Asian session.

The Tory Government witnessed another humiliating day in the House as British lawmakers voted in favor to avoid a bill that turns down the United Kingdom (UK) Prime Minister’s (PM) bid to call a snap general election in mid-October. The Government received the support of only 56 members of the parliament (MPs) while there were 298 votes blocking the proposal.

The UK policymakers supported a motion to block the no-deal Brexit on Tuesday.

Following a heroic victory in the parliament, the opposition Labour party still holds its breath as ITV spots anonymous Tory member saying that the UK PM is firm on his decision to call for a general election if needed to crash out of the EU on October 31.

The bill, which recently got parliament approval to block the general election, is still in the pipeline to get the Royal Assent that might create some suspense. Also, the UK PM could resign, even if he has denied in a recent public appearance, to create additional noise to the UK politics.

Technical Analysis

GBP/USD is now on the way to 1.2308/10 area including August month high and 50-day simple moving average (SMA), a break of which can further propel the pair to early-July low surrounding 1.2382. Alternatively, 21-day SMA level of 1.2155 and 1.2100 round-figure can entertain sellers during the pullback.