GBP/USD rebounds from lows near 1.3000 ahead of Brexit vote

• Cable quickly loses momentum and drops near 1.3000.
• UK AG G.Cox said the legal risk of Brexit deal is intact.
• The House of Commons will vote later today on May’s plan.

After clinching fresh tops in the proximity of the 1.3300 handle during early trade, GBP/USD is now shedding around a cent and flirting with the key support at 1.3000 the figure.

GBP/USD offered ahead of Brexit vote

Cable has quickly picked up downside pressure today after J.Redwood stressed the ERG is unlikely to back May’s deal, while in subsequent comments AG G.Cox noted that legal risks of a Brexit deal remain unchanged, clearly confronting earlier comments from PM May ahead of the crucial vote this evening.

In addition, Brexit Secretary Barclay said there is no date set to end the Irish backstop.

Earlier in the UK docket, both Industrial Production and Manufacturing Production expanded more than expected during January, while the trade deficit   widened to £13.08 billion during the same period.

Regarding today’s vote, a rejection of May’s deal at the House of Commons will open the door to another vote on a ‘no deal’ motion tomorrow. If this vote also fails, there will be a last vote on Thursday on the probable extension of Article 50.

What to look for around GBP

The Sterling is expected to remain under the microscope in the next hours in light of the crucial vote later today (and probably on Wednesday and Thursday). In this regard, PM May said some last-minute progress has been made between the UK and EU officials, although the opposition party has talked down the fact. On another front, PM Theresa May made clear her intentions to remain in office to deal with the domestic agenda in the next months (say after Brexit), opening at the same time another potential source of political uncertainty.

GBP/USD levels to consider

As of writing, the pair is losing 0.77% at 1.3046 and a breach of 1.2987 (200-day SMA) would aim for 1.2960 (low Mar.11) and finally 1.2954 (55-day SMA). On the upside, the next hurdle aligns at 1.3288 (high Mar.12) seconded by 1.3350 (2019 high Feb.27) and then 1.3362 (high Jul.9 2018).