While many were focusing on the tabloid headlines which reported the government order to increase preparations for a no-deal Brexit, GBP was actually higher yesterday on reports that Theresa May is now just 20 votes away from gaining support for her Brexit deal.
Trading the news requires access to extensive market research - and that's what we do best. Open your Orbex account now.
May Needs To Win Over The DUP
Speaking with reporters this week, a senior UK cabinet member said that success with the vote would depend on whether May could gain the necessary assurances needed from the EU to persuade the DUP to back her plan.
The DUP have been staunchly opposed to any plan which includes the activation of a hard border between the mainland UK and Northern Ireland.
However, May is working hard to gain assurances from Brussels that this will not be the case. If she is successful in getting such assurances, the DUP might be persuaded to back her deal.
Indeed, it seems that relations between the beleaguered PM and the DUP are in better health following May’s speech last week when she addressed the 1922 committee telling ministers that she had made mistakes in allowing the relationship with the DUP to “drift”, before assuring ministers that she and the DUP leader Arlene Foster were now on “one page”.
For now, GBPUSD remains below the local 1.2693 level resistance having bounced off the supporting trend line running along October 2017 and July 2018 lows. Focus remains on further downside unless we move back above the trend line resistance running from year to date highs.