Cable is trading in a narrow 17 pips range so far today
The latest development in the Brexit saga comes from a report overnight that May's Brexit deal looks set to face a defeat of up to 100 votes in the meaningful vote. As it stands, she won't get legally binding concessions on the backstop nor are European leaders willing to offer her promises of a time-limited backstop and that remains the impasse in negotiations seen this week.
The fact of the matter is, all of this is made well known since last month already as highlighted here. One can argue that May remains stubborn on the matter but what else can she do between now and the EU Summit on 21 March, if not to try and hopefully shore up more support for her Brexit deal?
However, all the effort doesn't look like it'll bear any fruit as UK lawmakers so far appear to be unconvinced of May's proposal. What that means is we're quite likely to be headed down the road of parliament voting for a Brexit extension next week.
On the surface, that sounds positive but the nature of the extension is less optimistic. With European leaders unwilling to budge and UK lawmakers not having any of that, an extension will only prolong the impasse at hand - not solve it. Given that, further Brexit uncertainty will only compound worries for the UK economy and that isn't good news for the pound either.
Unless we're starting to head down the road of a second referendum or a softer Brexit deal, the pound's outlook in the immediate term looks to be covered with potential potholes.
For the time being, key support in cable is seen at 1.3100 while upside remains limited as near-term resistance levels are helping to limit gains. The 100 and 200-hour moving averages - seen at 1.3185 and 1.3204 respectively - will help to keep a lid on price action as headlines continue to be less than ideal for sterling over the next week.
As it stands, it looks like things are likely to get worse before they get any better for the pound from hereon.