The Cable gains some ground yesterday after the European Union granted a three-month Brexit extension, however the UK parliament rejected Johnson's proposal for snap elections. PM Johnson will call another vote on a December election today, which has a greater chance of success, as it would only need a simple majority to succeed and not two thirds as required in previous attempts. That said, Johnson would still need support from the Liberal Democrats and the Scottish National Party. The British Pound will likely retest 1.2950 or even higher if the Parliament approves an early election. If the vote fails, then the Sterling may drop towards 1.2715.
The Sterling buyers are still in control as they are attempting to breakout from the Bullish Flag for an imminent 50-day moving average retest. If the bulls find enough momentum, then a retest of the 1.2950 resistance level will be a likely scenario. On the other hand, if price breaks below 1.28 in today’s session, then the bears will take back control in the short-term and pull the price towards 1.2715.
Support: 1.2850 / 1.28
Resistance: 1.2850 / 1.2950