Sterling pinned near day's lows as Brexit deal vote outcome eyed

Sterling held near the day's lows on Tuesday before a crucial vote where British Prime Minister Theresa May faced the prospect of a historic defeat in a vote on her Brexit deal in parliament.

The British currency briefly fell below $1.27, its lowest level since Jan. 4, as investors worried that May's likely defeat would open a range of outcomes, from resurrecting her deal to leaving the EU with no deal or even another referendum that could halt Brexit.

Against the euro, the pound was trading at 89.51 pence.

In a session that started at 1900 GMT lawmakers were voting on May's plan but her recent efforts to win support for the deal looked set to fail, despite her warnings that rejection of the deal could lead to Britain staying in the European Union.

While the British currency is seen as having priced in a 'No' from parliament, investors are focusing instead on the margin May loses the vote by. (Reporting by Saikat Chatterjee; Editing by Janet Lawrence)