The pound sterling weakens across the board after the speaker of parliament ruled out a third vote on Mrs May’s Brexit deal. The PM was told there would not be a new vote unless she comes back a new whole deal. Market reaction was limited as few would expect the government to submit amendment satisfactory to all parties involved within two days. In the meantime, EU leaders could adopt a wait-and-see stance before agreeing on a delay.
On the technical side, cable is testing the 20-day moving average as a support level. 1.3300 is the immediate resistance before any rally. The area around 1.3180 could see buying interests as the price makes another attempt to the upside.
The sentiment-price correlation chart shows the sentiment dipping into the negative territory. Daily news sentiment is moving lower and in 40% of the last 10 occurrences price has fallen within 9 days.