Brexit and GBP/USD Price, Chart and Analysis
- Brexit not over the road but as DUP reject present deal.
- GBP/USD hit by revenue taking however market tone stays constructive.
Brexit Impasse as DUP Reject Current Brexit Deal
The Democratic Unionist Party (DUP) mentioned this morning that it can’t comply with the newest Brexit proposals put ahead by the EU and UK. The DUP mentioned they continue to be involved over VAT association and ‘customs and consent issues’ and won’t again the deal. Earlier, European Council President Donald Tusk mentioned that a deal may ‘theoretically’ be agreed and put to the EU27 on the two-day EC Summit assembly beginning at present in Brussels. UK PM Boris Johnson will proceed to push his case and negotiations with the DUP and the EU stay ongoing. If an settlement could be reached, UK PM Johnson will ask Parliament to vote on the invoice on Saturday. This could show troublesome for PM Johnson as he doesn’t command a majority within the House and numerous anti-Brexit teams will proceed to vote in opposition to any settlement. The EU has already voiced fears that any deal they provide could not move Parliament.
Sterling has come off its latest heady ranges however stays underpinned as expectations of a no-deal Brexit fade additional away. GBP/USD is at the moment round 1.2780, round 1 cent decrease than Wednesday’s five-month excessive, however nonetheless over 5 cents larger over the past week. The day by day chart exhibits GBP/USD to be closely overbought, however the pair stay above all three shifting averages and the 50% Fibonacci retracement stage (1.26700) of the March 19 – September three sell-off. If a deal acceptable to all events is discovered, GBP/USD is predicted to rally additional. The 61.eight% Fibonacci retracement stage at 1.2838 was damaged yesterday – however not closed above – and is prone to be solely a small barrier in the best way of a run as much as 1.3177 and doubtlessly larger.
GBP/USD Daily Price Chart (January – October 17, 2019)
IG Client Sentimentexhibits that retail merchants are 57% net-long GBP/USD, giving us a bearish contrarian bias. However day by day and weekly adjustments give us a bullish bias.
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