GBP / USD down, but how fragile is this structure?

• GBP / USD going down on the realistic outlook of a difficult Brexit.
• The pound sterling is up here stimulated by the prospects of an alternative in May Plan B and hopes that Europe will move.
• GBP / USD is currently trading at 1.3064, down from 1.3122, up slightly from 1.3053.

Yesterday, the page was turned to a new chapter in the Brexit saga and the pound sterling is weakened, in tune with market thinking and the risks plummeting of a Brexit without a transaction.

The House of Commons pbaded two amendments yesterday. First, a non-binding statement that a result without agreement is unacceptable. Secondly, the amendment says Brady (supported by the May administration) who asks the British Prime Minister to replace the security solution with "alternative arrangements to avoid a hard border", pushing the United Kingdom to get closer to a managed output without agreement.

Theresa May will now go to Brussels and ask for a unicorn

At first, the vote in Parliament caused some indecision on the markets. However, the British Pound's price reflects the Brexit's negotiated outcome for a unicorn, while May goes to Brussels empty-handed, yet calling for a "managed deal". A managed deal would be something like paying the EU to allow for a transition period before the non-agreement becomes a harsh reality. Markets seem to be positioning themselves for a much more benign and probability-weighted Brexit outcome than a few months ago (or even a few weeks), which is the foundation of what is arguably a very supportive support structure. fragile.

GBP / USD Levels

"We have seen a retracement to 1.3065 / 00 as expected (count of Elliott's intraday wave) and a short-term uptrend at 1.2978." Commerzbank badysts explained: "We find also the highest in July, September and October at 1.3258 / 1.3363 .While we allow this test to hold the initial test, it is possible to set the June high to 1.3473 and to 1.3650 slightly longer term. "