GBP/USD Traders React to Latest Brexit Developments
FOREX.com | Mar 27, 2019 06:00
Over 1,000 days after the UK narrowly voted to leave the European Union, it’s still not remotely clear how the new relationship will look, who is in charge…and even whether the UK will leave at all!
Yesterday, Parliament voted to “seize control” of the Brexit process from PM Theresa May. As its first point of order, Parliament will hold non-binding “indicative” votes on the path forward tomorrow, with the options running the gamut from a no-deal Brexit in the next few weeks to another referendum to cancelling Brexit altogether. Meanwhile, speculation abounds that PM May could soon offer to resign (or be forced out) in the coming days. With apologies to my UK colleagues, the whole situation is “a right pig’s ear.”
Amidst the contentious disagreements, all parties seemingly agree on the need to avoid a no-deal Brexit, and as a result, GBP/USD continues to hold up relatively well around the 1.3200 handle as we go to press. From a technical perspective, the pair has established support in the 1.3050-1.3100 area from its rising 50-day moving average and a bullish trend line off the start-of-the-year lows. Strong resistance looms in the 1.3300-1.3360 range, which has capped rates for the past nine months.
The outcome of tomorrow’s votes may help determine whether GBP/USD tests resistance or support next, but as we saw with the Brexit vote itself, a deeply divided, non-binding vote often leads to even more uncertainty rather the clarity that traders are seeking. With GBP/USD coiled tight, an explosive move is likely in the next week or two.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Get The App
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.