Brexit uncertainty continues - GBP bulls getting excited over indicative votes
The rumour mill is rife in Brexit world at the moment, with the mainstream media reporting all kinds of developments within the government. This weekend, there was a heavy skew towards stories over a cabinet coup, looking to oust the PM due to her constant change in direction over how the Brexit process should proceed.
Over the weekend, Theresa May invited members of the Conservative party from all corners of the Brexit debate, with a view to trying to get support for her withdrawal deal - which is now set to be re-tabled to the House tomorrow.
Later on today, she will address the House over her latest meetings with the EU and parliament will debate the next steps through a series of amendments and proposals, said to include the extension.
As such, the market is getting its hopes up that indicative votes will be tabled later this week, including motions for a customs union, a customs union and single market, no deal or revocation of Article 50. This would imply a form of soft or no Brexit, and GBP has been pushed up to reflect the odds.
Cable is running into resistance in the mid 1.3200's in the meantime, though we note stronger resistance in and around 1.3300.
EUR/GBP is also finding strong support ahead of 0.8500 and this stretches down to the 0.8475 or so, from which we have seen a strong bounce twice in recent weeks.