GBPUSD Price Forecast – GBPUSD Awaits Directional Cues From Today’s Parliament Meeting

British pound awaits headlines on Brexit plan B vote from UK parliament as it continues to maintain rangebound price action since trading session opened for the week.
Colin First
GBPUSD Tuesday
GBPUSD Tuesday

The GBPUSD pair is now on range bound action ahead of today’s highly anticipated and most watched UK parliament session which is set to vote on PM May’s Brexit Plan B. The pair yesterday started a downward price action as investors decided to book profits from the recent rally ahead of Key event, the outcome of which had potential to erase all gains made till date. The pair found resistance at 1.32117 the mark which is 3½ month tops and declined below mid 1.31 handle but 1.3100 continues to act as strong support in immediate scenario resulting in pair taking consolidative action around 1.315 mark. As of writing this article, GBPUSD pair is trading flat at 1.3164 up by 0.02% on the day.

Brexit Optimism Continues To Underpin GBP Bulls

News hit the market earlier last week that DUP party members have decided to support PM May on her plan B proposal and headlines yesterday hinted that PM May has agreed to take no-deal Brexit off the table. While some of the major issues are yet to be ironed out, this is one of the main factors that led to hindrance from opposing party Leader Jeremy Corbyn on PM May’s last Brexit vote. Given EU’s assurance for freshly written clarification on Irish backstop which is the demand from DUP party members and PM May’s agreement for taking No-deal exit out of the equation which for now is expected to calm down labor party members, today’s vote is likely to turn out in PM May’s favor.

Such an outcome could push GBP back above 1.32 handle and establish a sustained bullish rally. Meanwhile, an amendment that facilitates second Brexit referendum is passed could see the pair trade range-bound in short term with an outcome that results in cancellation of Brexit pushing the pair higher. Given the current scenario, there is very little for any other outcome and so immediate outlook for British Pound is positive. While contradictory headlines could push the pair on bears path, the pair would still face strong support around 1.30 handle as investors await further updates while positive proceedings will result in sustained positive rally or range bound rally with bullish bias in immediate and near future market session.

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