The pound got pounded again as none of the alternatives received majority support from the British parliament last night. The sole solace investors could find was in rising support for a custom union. Nevertheless, Brexit remains in a stalemate and as the EU negotiator Barnier stated, the risk of Britain crashing out of the bloc without a deal has increased. We could expect the pound to range-trade without clear direction for the time being.
On the technical side, cable is testing the daily support of 1.2970. Its break could send the price to 1.28. On the upside, 1.3150 is a key resistance on the upside.
The sentiment-price correlation chart shows the sentiment struggling to break above the neutral line. Daily news sentiment is moving higher and in 50% of the last 10 occurrences price has risen within 9 days.