The pound sterling came under pressure as London struggles to break the stalemate with Brussels just a day before parliament’s vote on the Brexit deal. Markets widely expect Prime Minister May to suffer another heavy defeat tomorrow. There are already calls from within her ranks to postpone the vote again. As the inaction goes on, traders will focus on other scenarios. British foreign minister Jeremy Hunt said on Sunday Brexit could be reversed, which would give hopes to cable buyers.
On the technical side, the price is testing the 1.2970 daily support. A break below could send the pair to 1.2890. On the upside, 1.3020 is the immediate resistance.
The sentiment-price correlation chart shows the sentiment reaching a lower low in the negative territory, which indicates an extremely bearish mood in the market.