Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Colin First

British Pound is the star of this week risky forex asset given that GBPUSD is the best performing high-risk forex pair of the week. While Brexit headlines and proceedings continue to remain the main driving force behind British Pound’s recent rally, the latest leg of bullish price action has been influenced by an entirely different perspective compared to earlier rallies. The pair saw positive price action on investors hope for a possible extension of article 50 and second Brexit referendum until yesterday. However, news has now hit the market that DUP is willing to support PM May on her Brexit plan B proposal during Tuesday’s UK parliament vote. Brexit proceedings have ramped up following above-mentioned headlines.

Brexit Progress Boosts Investor Sentiment With Each Passing Day

According to the article published in UK daily newspaper “The Sun” DUP party members are of opinion that parliament gaining control of Brexit proceedings in case PM May loses the vote on Tuesday will lead to messy Brexit and PM May retaining power on Brexit related decisions is the only hope for Decent Brexit. They believe that as long as the specified time limit is provided by EU for Irish backstop they are ready to provide complete backing to PM May. Given the current scenario where either there is a soft Brexit deal or a chance where remaining Tories and Labor party members push for an amendment that extends article 50 and hopefully puts into motion a second Brexit referendum – both of which are looking highly positive for UK’s economy as compared to situation in last quarter of 2018, positive influence surrounding GBP is very high in broad market.

GBPUSD pair managed to breach 1.31 handle over the influx of bullish investor sentiment following the news update and has since sustained a rally above 1.3100 handle. As of writing this article, GBPUSD pair is trading at 1.3111 up by 0.36% on the day. On release front today, UK market will see the release of gross mortgage approvals while the U.S. market will see the release of new home sales data and Core durable goods order data. Macro data could inspire some level of volatility in price action but unlikely to have any lasting impact as investors are focused on Brexit updates ahead of Tuesday’s UK parliament session. The pair is expected to continue further upward price action as long as it has strong support at 1.3100 handle, however, a decline below said level will lead to sharp decline back towards mid 1.30 handle where range bound action is likely to continue ahead of UK parliament vote on PM May’s Plan B proposal.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.