The pound plunged on Friday morning as markets grow increasingly pessimistic that Prime Minister’s third attempt charm the parliament with her bill will be fruitless. However, some would expect more support from the conservatives now with their backs against the wall. A deal looks still more attractive than longer delays with more uncertainties, and who knows a remote possibility that the divorce might get cancelled altogether.
On the technical side, cable is testing the psychological level of 1.3000. Its break could send the price towards 1.2900. On the upside, 1.3080 is the immediate resistance for the day.
The sentiment-price correlation chart shows the sentiment dropping below the neutral line. Daily news sentiment is moving lower and in 50% of the last 10 occurrences price has fallen within 8 days.