GBP/USD: Balanced Flows Despite Another Brexit Bill Passes

The muted buy-side activity in the Sterling even as the article 50 extension bill won enough endorsement in the UK parliament seems to be a reflection of enough good news priced in.

Most of the volume concentration (PoC) fell right around the middle of the daily range, suggesting that playing the edge of the range for potential rotations is a scenario to consider.

The intermarket studies (DXY + bond yield spread) remain unambiguously bullish, supporting the notion of buying on weakness at relevant decision points.

The key levels where clusters of demand may be found come at roughly 1.1310-1.13, followed by the 3rd touch of an uptrend line and ahead of Wednesday’s POC at 1.1345-50.

The overall structure of HH & HL coupled with constructive order flow as per the impulsive demand observed vs corrective setback (more 2-way business) supports the bullish bias too.