Search ForexCrunch

The Guardian has reported that Downing Street is facing a showdown with Conservative backbench rebels as criticism over its plans to break international law with a new controversial bill that could override parts of the Brexit withdrawal agreement grew louder on Sunday.

It is understood that opposition among the party is growing, with dozens of Tory MPs expected to support a key amendment to the internal market bill that would give parliament a crucial veto of any changes to the agreement.

MPs will have an opportunity to air their opposition during a second reading and debate of the bill on Monday, when it will also be put to a vote before passing to committee stage. A number of Tory MPs intend to abstain on Monday’s vote, with up to 30 expected to back the amendment tabled by Sir Bob Neill, chair of the justice select committee, next week.

GBP/USD implications

  • GBP/USD Forecast: More Brexit chaos in the docket

The pound is consolidating at the structure and a 38.2% Fibonacci retracement could be on the cards prior to further selling emerges:

Daily chart