GBPUSD has moved below the 1.29 handle last night after the House of Commons voted against a proposal to examine the prime minister’s bill in three days. The Prime Minister Johnson reiterated his will to push for election if EU offers extension until January.
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Although the MPs approved Johnson’s Withdrawal Agreement Bill in the second reading (329 votes to 299), the House of Commons defeated the PM in a second vote, just a few minutes after the first vote, on a fast-tracked procedure for the deal.
“We want to crack on. And if we can’t crack on, regrettably it does seem that a general election is the only way to sort this impasse out,” commented Justice Secretary Robert Buckland.
As a result, GBPUSD initially moved 120 pips lower to $1.2880, before hitting a 5-day low of $1.2841. The resistance, in the context of the ascending trend line, remains at $1.3080, while the first substantial support is located at $1.2780.