Sterling could get a boost if Britain's scheduled exit from the European Union on March 29 is delayed -- and the longer the delay, the better for GBP.
UK cabinet ministers have held talks about postponing Brexit by eight weeks to May 24, according to a Telegraph newspaper report, and hope the EU will agree to a "grace period" nL5N2007WY.
The EU is expected to agree to a Brexit delay if Britain seeks it, with the European Council meeting on March 21-22 providing a window of opportunity for its approval.
The Telegraph's report was published a week after UK MPs rejected the Cooper amendment in a Commons vote -- a rejection which increased fear of a "no-deal" Brexit on March 29, to the detriment of sterling.
The pound slid to two-week lows against the dollar and euro Tuesday as lots of GBP longs were ditched after cable broke below its 200-DMA.
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