GBP/USD meets support in the 1.3280 region

• Cable remains around 1.3300 after testing lows near 1.3280.
• UK Parliament will vote on March 12/13/14.
• A ‘no deal’ scenario remains on the cards.

The upside momentum in the British Pound seems to be taking a breather so far today, with GBP/USD hovering over the key 1.3300 neighbourhood after a brief knee-jerk to the 1.3280 zone, where some support emerged.

GBP/USD keeps focused on Brexit

The Sterling navigates the area of recent yearly tops around 1.3300 the figure after PM Theresa May’s motion passed the vote at the House of Commons on Wednesday evening.

In addition, GBP seems to have regained some composure following the vote, while investors will now look to the crucial votes on March 12/13/14, including the likeliness of an extension of Article 50 for an extra 2-3 months. The ‘no deal’ option, however, remains well on the table for the time being.

In the UK docket and earlier in the session, house prices tracked by Nationwide expanded at a monthly 0.4% MoM during February and contracted 0.1% from a year earlier. Moving forward, key manufacturing PMI is due tomorrow along with BoE’s Consumer Credit figures and M4 Money Supply.

What to look for around GBP

The British Pound is expected to remain under the microscope in the next weeks in light of key votes in mid-March. In light of yesterday’s vote and latest news, the probability of a second referendum has diminished, while a ‘no deal’ scenario remains on the table and the extension of Article 50 is likely, albeit for 20-3 months. On the broader picture, PM May made clear her intentions to remain in office to deal with the domestic agenda in the next months, opening at the same time another potential source of political uncertainty.

GBP/USD levels to consider

As of writing, the pair is losing 0.01% at 1.3305 and a breach of 1.3217 (high Jan.25) would aim for 1.3091 (200-day SMA) and finally 1.3016 (21-day SMA). On the upside, the next hurdle aligns at 1.3350 (2019 high Feb.27) followed by 1.3362 (monthly high Jul.9 2018) and then 1.3472 (monthly high Jun.7 2018).