Technical, fundamental analyses point to £ slide

AS the Oct 31 Brexit deadline draws nearer, there remains much uncertainty over the UK's fate. Hence, the GBP/USD has turned very volatile, as it attempts to find a direction amid the Brexit news cycle.

Last week, the possibility of a "hard Brexit" was reduced, after the House of Commons successfully backed a bill that would force the government to request a three-month Brexit delay from the European Union (EU), instead of proceeding with a "hard Brexit" on Oct 31.

The bill is likely to pass the House of Lords on Monday and become law. This will go against UK Prime Minister Boris Johnson's wishes, as he was fixated on having a "hard Brexit" by suspending the UK parliament for a month from Sept 12 and requesting a snap election on Oct 14. Therefore, with PM Johnson's attempts foiled, it has resulted in the GBP rebounding from its 28-month low.