The Pound rose sharply on Tuesday as lawmakers prepared to vote on a divorce deal after Prime Minister Theresa May won last-minute assurances from the European Union. The UK Parliament overnight rejected Prime Minister Theresa May deal by 391-242 votes, giving the Pound a modest boost, as it opens doors for an extension. The Pound advanced above 1.3100 after the vote.
If lawmakers reject a ‘no deal’ exit on Wednesday, another vote would then be held on Thursday on whether Britain should request from the EU a limited extension of the March 29 Brexit date.
From a technical perspective, the GBP/USD pair is currently trading at 1.3072. We continue to expect support to hold on moves approaching 1.3050 while now any upward push will likely meet resistance around 1.3120.