The British Pound closed just below 1.30 during Friday’s session just before the parliament votes on whether it approves the new Brexit deal or not. However, the voting turned out to be a disappointment, with the UK parliament withholding support for the Brexit deal, forcing PM Johnson to send a letter to the EU requesting a three-month extension to article 50. Johnson will try again today to secure parliament’s support for his Brexit deal in a yes/no-meaningful vote. However, markets fear the Speaker could rule it out of order or MPs again withhold support for it until full legislation is passed. Overall, the Brexit uncertainty looks set to linger at least for three more months. Therefore, the bullish sentiment could start fading and the Cable may come under pressure.
Despite the negative sentiment, the bulls are still holding on to the recent strong uptrend. The bears need to break below 1.2885 to confirm the loss of bullish sentiment, and pull the price back towards 1.2785. However, as long as the Cable remains above 1.2885, the bulls will remain in control, possibly retesting 1.2991 or even higher.
Support: 1.2885/ 1.2785
Resistance: 1.2991 / 1.3050