Brexit no-deal off the table
GBPUSD
We finally have some clarification for one of the biggest market risks – Brexit. The no-deal Brexit has been blocked in the British Parliament. This sent the pound higher and provided stable footing for traders to speculate from. Additionally, Prime Minister Theresa May has reached out to the Labour party’s Jeremy Corbyn for support. They used to be enemies on the way the saw Brexit, but as they say, the strongest allies are past enemies. All alliances that lead the economy towards a stable future is welcome. Ministers within the government that have been predominantly voting against everything May has pushed forward are resigning at an increasing rate. The public will not miss them.
Fundamentally, the UK’s biggest export is their services sector, particularly financial services. Services sector data sets have shown a contraction that was not priced into the forecast. This is due to the Brexit uncertainty and companies moving head offices out of London and into the Eurozone.
Pound Sterling received the lift it was looking for. Price is currently above the channel line, above the 200EMA and above the psychological level of 1.3000. A long trade could be opened if a retest of the 200EMA was to appear. Also, a breakthrough of 1.3200 could be an entry point with a take profit below 1.3400.
We finally have some clarification for one of the biggest market risks – Brexit. The no-deal Brexit has been blocked in the British Parliament. This sent the pound higher and provided stable footing for traders to speculate from. Additionally, Prime Minister Theresa May has reached out to the Labour party’s Jeremy Corbyn for support. They used to be enemies on the way the saw Brexit, but as they say, the strongest allies are past enemies. All alliances that lead the economy towards a stable future is welcome. Ministers within the government that have been predominantly voting against everything May has pushed forward are resigning at an increasing rate. The public will not miss them.
Fundamentally, the UK’s biggest export is their services sector, particularly financial services. Services sector data sets have shown a contraction that was not priced into the forecast. This is due to the Brexit uncertainty and companies moving head offices out of London and into the Eurozone.
Pound Sterling received the lift it was looking for. Price is currently above the channel line, above the 200EMA and above the psychological level of 1.3000. A long trade could be opened if a retest of the 200EMA was to appear. Also, a breakthrough of 1.3200 could be an entry point with a take profit below 1.3400.
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