The results of yesterday’s vote in the British Parliament did not have a strong impact on the GBP / USD pair and today trading takes place as part of the price range formed yesterday.
The UK parliament was expected to vote to postpone Brexit, but investors have shown restraint, since the final terms and conditions for the UK’s withdrawal from the EU are still undefined and suggest several scenarios. Theresa May still has time to March 20 to convince the parliament to accept her draft agreement with the EU and in that case, according to yesterday’s vote, the Brexit deadline will be shifted from March 29 to June 30. If the parliament rejects the draft for the third time, May will need a longer extension of the Brexit period. What option in the end will be realized is still unknown. The fact is that in the parliament many deputies do not want to strongly delay the Brexit process, therefore, having no other alternatives, they can support the draft agreement proposed by the Prime Minister. Moreover, the “hard” Brexit scenario is still not completely excluded in the first and second cases.
The postponement of the Brexit date can also adversely affect the development of the British economy, which has been operating for a long time under conditions of high uncertainty and risks associated with Brexit, putting quite strong pressure on the national currency. The decision of the Parliament actually extends this difficult period for the UK business, which may adversely affect the country's economy and the pace of its development in 2019.
On the chart, a correction is being developed, after testing a very strong resistance range, which can be designated as 1.3330-1.3350. If we look at the situation at lower time intervals, here the greatest interest for us is the mark of 1.3300, which buyers repeatedly unsuccessfully tried to pass yesterday. Accordingly, today at this level we again expect the formation of a reversal, within which the currency pair will be able to continue the corrective decline.
· Resistance levels: 1.3330, 1.3350, 1.3400;
· Support levels: 1.3200, 1.3050, 1.3000.
The main scenario is a reversal at 1.3300 and a decline to 1.3150.
An alternative option is the breakdown of resistance 1.3300 and growth to 1.3350.
Yesterday, the currency pair failed to consolidate above the 1.3300 mark, so today the scenario with the development of the corrective movement in the direction of the level 1.3150 is more likely to work out. Therefore, intraday preference should be given to shorts that are best sought near the level of 1.3300.