The epic Brexit is finally close to resolution. The United Kingdom will leave Europe Jan. 31. The UK Parliament approved the law and European Parliament due to approve it next Wednesday. So, on Jan. 31 the UK will be set free. Not completely while Britain should abide the EU laws until the end of 2020 when a new trade deal between the parties expected to be approved.
Nevertheless, the limber Brexit scenario after the UK Prime Minister Boris Johnson secured the majority in the Parliament with a goal to bring Brexit to its final.
Transparent and smooth path of the Brexit gave an optimistic momentum to the Cable bringing GBP/USD from 1.2960 on Monday above 1.31000 level. As long as the Brexit will be heading smoothly towards its resolution the less impact it will have on the British currency and Euro as well. More traditional and fundamental issues such as economic indicators and Bank of England actions will play the determinant role.
One of such factors is expected publication of leading PMI indicator data Jan. 24 that reflect business sentiment in the UK. The ridge of 50 points is crucial and expected to be overpassed by 0.5 points (to 50.5), first time since September 2019.
The positive data could support the upward trend for the Cable that was delivered last August bringing GBP/USD to strong resistance levels of 1.3200-1.3250. Any disappointment in the outcoming data could prompt an alternative scenario to pressure GBP/USD to 1.2900-1.2950 resistance zone. Once this support is broken the pound could fall further to 1.2770-1.2820.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.