GBP/USD eases from tops, challenges 1.2900 ahead of key vote

• Cable retreats to the 1.2900 neighbourhood after clinching 2-month tops.
• All the attention remains on the vote at the House of Commons later today.
• PM May’s Brexit plan is expected to be rejected today.

The buying bias around the Sterling remains well and sound so far today despite GBP/USD has receded from multi-week tops around 1.2930.

GBP/USD looks to Brexit vote

Cable is gaining ground for the third consecutive session on Tuesday, always on the back of renewed optimism sparked after rumours of a no Brexit scenario and a potential extension of Article 50.

Therefore, price action around the British Pound is expected to remain volatile and to follow headlines ahead of the crucial vote at the House of Commons in the European evening.

Consensus among investors, in the meantime, sees May’s plan being rejected today, although the focus of attention now appears to have shifted to the ‘size’ of PM May’s defeat. A ‘small’ difference in votes could add further support to GBP as opposed to a defeat by a larger margin. All in all, a defeat today should do nothing but increasing the already high uncertainty around the final outcome (if that day ever comes).

GBP/USD levels to consider

As of writing, the pair is up 0.19% at 1.2885 facing the next hurdle at 1.2930 (2019 high Jan.14) seconded by 1.3072 (high Nov.14 2018) and then 1.3119 (200-day SMA). On the other hand, a breach of 1.2819 (low Jan.14) would expose 1.2774 (55-day SMA) and finally 1.2699 (21-day SMA).