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Thomson Reuters
Jan 30 - 02:36 PM
GBP/USD - COMMENT-No-Deal Brexit Fear Keeps GBP/USD On The Back Foot
First appeared on eFXplus on Jan 30 - 12:55 PM

GBP/USD remains offered after Tuesday's UK parliamentary voting rekindled fears of a chaotic Brexit, and sterling is likely to remain hamstrung by the uncertainty.
Though voting showed considerable, if not enough to pass, support for a delay of Article 50, hard-Brexit remains an option come March 29.
Cable is hovering by 200-DMA support by 1.3063, below pre-amendment voting highs by 1.3200.
A pickup in hard-Brexit sentiment will likely push GBP/USD lower testing 10-DMA support by 1.3032, below which bears regain the upper hand as the 10-DMA has trailed GBP/USD as it began its recent ascent in early January.
PM May faces a tough task.
She is now challenged with going back to Brussels to secure a deal, even as EU members reject renegotiation. Lack of consensus among May's own Conservatives party on Brexit makes reaching a deal all the more daunting.
PM May needs to impress the Europeans with a credible alternative to the Irish backstop, then there would be something to negotiate which would reinvigorate GBP bulls.

Chart: Click here

Source:
Thomson Reuters IFR Markets

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