The UK parliament has overwhelmingly voted against PM May’s Brexit deal and it now looks like traders are betting that the deadline will be extended.

May has been trying to avoid taking the UK through the Brexit without some type of deal in place.

However, she lost the vote by a massive 230, forcing her to go back to the drawing board.

The UK is scheduled to leave the EU on March 29, but that now looks like it might be extended.

Either way, it was a vote of no confidence in PM May.

Pound Outlook

Ironically the GBP/USD jumped up and down on the day and ultimately finished back where it began.

The fact that the deal was rejected was clearly negative, however, many felt that it was more a matter of by how far more than anything.

If the deadline is extended that will be a positive for the GBP/USD in the short-term.