British Pound Outlook, Brexit, GBP/USD Technical Analysis – Talking Points
- British Pound could reverse latest positive factors if Brexit perils undermine confidence
- UK members of Parliament might be voting on Boris Johnson’s new Brexit plan
- Will DUP derail Johnson’s plan, and if so, will there be one more extension?
The Euro could edge larger in opposition to the British Pound if hopes for an orderly Brexit proceed to dissolve. On October 17, UK Prime Minister Boris Johnson and European Commission President Jean-Claude Junker collectively introduced that a Brexit deal had been reached. Sterling rallied on the information, although its upside motion was curtailed by information that the Irish Democratic Unionist Party (DUP) wouldn’t assist his plan.
Securing their assist is important if Mr. Johnson needs to go a deal by way of the House of Commons. If he fails to achieve this, it may severely derail plans for an orderly Brexit which might probably see the British Pound reverse a good portion of its latest positive factors. However, EU Council President Donald Tusk has not dominated out the opportunity of an extension if lawmakers failed to agree on a deal on Saturday.
In Parliament there are presently 287 voting conservative lawmakers which Mr. Johnson will want if his proposal is to survive. He might also have to lean on over 20 former Tory MEPs who converted to change into independents. However, that is probably not sufficient votes which can compel the PM to ask for assist throughout the political aisle.
Market Analysis of the Day: Will the British Pound Reverse its Recent Gains?
GBP Index chart created utilizing TradingView
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— Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com
To contact Dimitri, use the feedback part under or @ZabelinDimitrion Twitter