GBP/USD - Technical outlook remains sanguine, correlations in al

The Sterling was the exception, lagging behind in terms of demand relative to the rest of peers. Where we stand right now in the Brexit mess, after the amendments votes this week, is as complicated as it ever was, as the EC is not backing off from its hard-line stance on the Irish backstop and that a deal will not be re-negotiated, even if it has become clearer that UK politicians won’t allow a ‘Hard Brexit’, which makes the prospects of an Article 50 extension not a distant possibility. In terms of price action, even if Tuesday’s commanding bearish bar may trump traders’ confidence to join the trend, similar to the rest of FX, the technical outlook remains sanguine, with correlation in alignment.