GBP jawboned to hold ground, despite Brexit chaos

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GBP jawboned to hold ground, despite Brexit chaos

Great Britain Pound & Brexit trending points

  • Market eyes Brexit Amendments, as UK lawmakers set to vote on PM May’s Brexit deal on GMT 19.00
  • Cooper Amendment likely to hold support level, liming GBP downswing
  • Media has reported a new way forward, as GBP may jumpstart, as suggested by a large lot of market analysts, although the risk of getting downsized has not been averted.

Investors focus Brexit Amendment

A critical risk event for GBP/USD pair would be taken into place today, the 29thof January, Tuesday, in the form of a parliamentary vote on the plan B of UK PM Theresa May. The Speaker of UK House of Commons, John Bercow had announced the amendments chosen for voting and MPs are set to vote on the Amendments on GMT 19.00, though the pound sterling has not yet shown any sign of decaying, holding still above $1.3152, after (25thJanuary) Friday’s exaggerative gain on Brexit hopes. While the market has been eyeing the votes on the Brexit amendments, the volatility level would likely to rise, which may range between, 70-100 pips.

Apart from that, the option activity has also been suggesting a GBP volatility with a move of over 1 percent or 132 pips may have been upcoming. More crucially, the British media has weighed on a new way forward with Plan C on focus, as a Daily Telegraph report has revealed that a renegotiated version of Irish backstop might have been on the table, proffering further rooms for Great Britain Pound to gain further against American dollar.

GBP/USD daily price chart

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GBP/USD daily price chart

Bottom Line

Although, the Brexit amendment vote has been breathing, the Great Britain Pound has not shown any abrupt market flip-flop and it has been trading on a calm water, which was not anticipated at all, as market has been anticipating an intense scale of volatility.

All of the factors are suggesting that despite Brexit volatility and whatever result may come through after today’s Brexit Amendment vote, the Great Britain Pound would likely to stay above its initial support level at 1.3045, with a critical sentiment level at 1.2980 at focus.

On the flipside, an opportune moment of gaining further appears to be limited, and the initial resistance level is holding up still on $1.3175, on a 90-day moving average, as an upbeat gold and crude price have been supporting the pair.

Read more on GBP here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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