The GBPUSD tumbled over 50 pips in a matter of minutes after MPs voted against Theresa May’s Brexit for a third time – by 286 votes to 344.
This rejection of Theresa May’s Brexit deal has created another element of uncertainty over Brexit, at a time where investors are desperately seeking clarity. With today’s result giving the UK until April 12 to announce a new plan, fears of a no-deal Brexit are likely to mount. The pressure for a second referendum or general election is only going to grow in voice after Theresa May's deal got rejected for the third time. Where we go from here remains open to question, and this uncertainty will weigh heavily on the British Pound.
Taking a look at the technical picture, the move below the psychological 1.30 level in the GBPUSD in the past few minutes does indicate that Pound traders are nervous about this latest development.
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