The British pound has lost its mojo on the back of the current development and the four-day consecutive rally for the pound against the dollar has changed its direction. However, the currency is still holding on to its over 5.2% gains month to date–its largest monthly gain since 2009.
Speaking from a technical perspective, the price is still trading above the 200-day moving average on a daily time frame and this assures bulls that the rally could continue. We think that the Sterling-Dollar pair needs more tailwind in order to cross above 1.30 mark because so far there are enough sell orders which are keeping the price below this level, according to Think Markets.
Despite his defeat in Parliament over the weekend, Boris Jonhson remains undeterred. The prime minister was forced to write to the EU to ask for a three-month extension of the Brexit deadline after losing a vote. However, he thinks that he has enough votes in his corner to take Britain out of the EU as per his promise before the current Brexit deadline. The prime minister is going to ask the House of Commons to support his corner in a new “meaningful vote” today.
The speaker of the House, Jon Bercow, could exercise his power and stop Johnson from holding a vote because he failed previously. The speaker could just see this as an exercise which would only waste lawmakers’ time—not that they have used it wisely so far—and make Johnson stand down from such a request.