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Brexit
Brexit

GBPUSD Nervously Awaits Brexit Deal Vote

    Summary:
  • GBPUSD has mildly retreated from the 5-month high it posted yesterday as investors nervously anticipate results of the afternoon's Brexit deal vote.

GBPUSD has mildly retreated from the 5-month high it posted yesterday as investors nervously anticipate results of the Brexit deal vote, scheduled for this afternoon. The sterling is currently down 0.51% on the day.

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In case the MPs vote for the deal, they will then be asked to approve the fast-track procedure in which they are expected to consider the legislation in the three-day timetable.

GBPUSD hit the psychologically-important 1.30 handle yesterday in a major push higher from the 3-year lows it created in September. The pound has currently gained 5.4% in October only.

The bulls have set their eyes on the major resistance at $1.3080, consisting of the 100 WMA, the 78.6% Fibonacci retracement of the March – September move lower, as well as the ascending trend line that connects the higher lows since 2016. This triple confluence of resistance is likely to play a major role in the price action over the coming days.

On the downside, the horizontal support at $1.2770 is expected to provide support to bulls, followed by the 100 DMA at $1.2713.Download our latest quarterly market outlook for our longer-term trade ideas.