GBP/USD reverses a knee-jerk fall

12 December, 2018

News that UK leadership challenge has been triggered prompted some aggressive selling. Possible delay in Article 50 might prevent Brexit supporters to back the no-confidence vote.

The GBP/USD pair reversed a knee-jerk fall to fresh 20-m0nth lows and rallied around 75-pips to fresh session tops, around mid-1.2500s in the last hour. 

The pair's sudden fall during the early European trading session followed the news that leadership contest against the UK PM Theresa May has been triggered as the needed threshold of 15% has been exceeded.

The pair dropped to an intraday low level of 1.2477 but quickly changed course as after the UK Justice Minister Gauke said that a delay in Article 50 would be needed if Theresa May loses the confidence vote. 

With several ministers coming out to pledge their support for May, Gauke's comments were seen as preventing Brexit supporters from backing the no-confidence vote, reportedly to be held at 1800 to 2000 GMT today.

Even if May is forced out, Parliament will take control of Brexit and expectations of a softer exit turned out to be one of the key factors prompting some aggressive short-covering bounce. 

Source link   Presented by HYCM

GBP/USD has one more resistance line

GBP/USD is trading in the mid 1.28s after Nigel Farage's Brexit Party boosted Prime Minister Boris Johnson's chances of winning. How high can cable climb?

Pound tumbles as Johnson seeks December 12 Election

Sterling fell out of favour with investors on Thursday after U.K Prime Minister Boris Johnson called for a general election on...

Pound's pullback creates buying opportunity

The British pound rally over the last week came to an abrupt end after a mixed day in the British parliament yesterday which still left many questions...

Pound shoots higher despite Brexit drama

The British Pound was in high demand on Monday despite UK lawmakers delaying a crucial Brexit vote over the weekend. Markets...

GBPUSD headed for 1.30 after UK

The Pound soared towards the 1.30 level against the US Dollar, after UK Prime Minister Boris Johnson and European Commission President...

Pound steady as Brexit negotiators race to meet deadline

The Pound is gaining against the US Dollar, amid reports that Brexit negotiators are rushing to try and meet a midnight...

Sterling Rises on Brexit Plan Release

A sea of red in US stocks yesterday after the US reported weak PMI data. The Dow Jones Industrial Average declined by 343 points while the Nasdaq...

GBP/USD pair fell by more than 1.2%

Yesterday, the GBP/USD pair fell by more than 1.2% amid Brexit uncertainty. The chances of next UK elections grow, so the bilateral agreement will...

UK Supreme Court rules parliament shutdown unlawful

Boris Johnson was dealt a heavy blow on Tuesday after the Supreme Court ruled his suspension of Parliament "unlawful, void and to no effect".


Share it on:   or