Investing.com - The pound struggled for direction Wednesday after UK Prime Minister Theresa's government survived a vote of no-confidence by a slender margin.
GBP/USD rose 0.05% to $1.2865 following the outcome of the vote. In the immediate aftermath of the vote, cable rose as high as $1.2896.
May's government won by 325 to 306 votes. The motion was brought against May by the leader of the opposition, Labour's Jeremy Corbyn, following the hefty defeat of the prime minister's withdrawal deal in the U.K. parliament on Tuesday. The withdrawal deal, which sets out the terms of the U.K.’s exit from the European Union, received 202 votes for and 432 against.
Speaking after the vote of no confidence in her government, May invited leaders of all parties to have individual meetings with her as soon as tonight to find a way forward on Brexit.
"We must find solutions that are negotiable and command sufficient support in this House," May said.
May has until next week to table an alternative Brexit deal.
The pound has edged higher in recent weeks as traders rein in bets on a no-deal Brexit, while hopes continue to grow that an extension to the Article 50 deadline beyond March 29 could be possible.
But analysts have warned that fresh elections could be called if the current Brexit impasse is not resolved by February.
"We expect greater clarity shortly, likely through a run-off between the government's deal and other options," Morgan Stanley said. "We see a risk of early elections if parliament fails to reach a decision by early February."