GBP/USD to be plagued with volatility as Brexit deadline nears

AS we edge closer to the March 29 Brexit deadline, there remains much uncertainty over UK's fate. GBP/USD has turned very volatile as it attempts to find a direction amid the Brexit news cycle and the consecutive days of key parliamentary votes that occurred last week.

Moving forward, should prices break below the key support level, more downside potential for the GBP/USD will entail.

An ascending channel has started forming for the GBP/USD pair since December 2018, as the risk of a "hard Brexit" fades. Till date, prices have tested the lower band support of the channel multiple times, most recently on March 11, 2019. This support proves to be crucial. Should a breakout occur, the GBP/USD pair will break away from its ascending trend, and could retrace to the previous low of 1.250.