Pound's pullback creates buying opportunity

23 October, 2019

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 surrounding the saga regarding Brexit and casting doubt on whether the UK will be able to leave the EU as planned by the end of the month

The British Parliament voted by 329 to 299 in favor of Prime Minister Boris Johnson’s Brexit plan, but less than 5 minutes later then opposed the PM’s timetable to put together legislation to quickly exit the EU by October 31st by 322 to 308 votes.

The EU will now need to grant an extension regarding the Brexit progress which many see as a foregone conclusion which will see he process drag out

According to some analysts the divorce deal will eventually go through and these thoughts should keep the pound well supported and any pullback in the British currency may be a good buying opportunity.

“We would buy dips, our view remains that Johnson is not a no-deal Brexiteer and that no-deal risk on Oct. 31, or indeed ever, remains relatively low,” said Adam Pickett, a foreign-exchange strategist at Citi bank.

Even on an election, the two most likely outcomes are Johnson getting his deal through with a majority or that a coalition leads the U.K. to ultimately remain in the EU, and “both of those outcomes are sterling bullish in the medium term.”


Source   Presented by FIBO Group
Pound pressured by no deal scenario1 Jul, 2020  

The British Pound is under further pressure in today's trading session against its European counterpart after fears have once again risen, that the UK...

Sterling Under Pressure as GDP Weakens30 Jun, 2020  

Sterling was under pressure in early European trade Tuesday, with the release of the final gross domestic production figure suggesting that the contraction...

Big day ahead for pound19 Jun, 2020  

Analysts are unanimous in their predictions that the BOE will keep interest rates on hold at 0.1 percent, and are pretty certain on how much further quantative...


Sterling sets aside Brexit risks2 Jun, 2020  

GBPUSD is trading around its highest levels in a month, having briefly breached the 1.25 psychological level. Sterling, along with the rest of its G10 peers...

Pound jumps on Brexit breakthrough27 May, 2020  

The British Pound is trading steadily in today's trading session, after yesterday's jump following news of a further easing in lockdown measures surrounding...

Pound Heads for Worst Monthly Slide This Year26 May, 2020  

The pound is heading for this year's fourth monthly slide, and a lengthening list of risks is pointing to more turbulence in June. Sterling traders look set to face...


GBPUSD Daily: Negative sentiment prevailing25 May, 2020  

The GBPUSD currency pair, on the D1 time-frame, was in an uptrend until April 14 when a higher top was recorded at 1.26471. The bears found the price attractive...

Euro strong after Franco-German proposal21 May, 2020  

The euro is continuing to climb in today's trading session, following on from yesterday's gains after a proposal by France and Germany to fund grants...

Will the GBP be pressed by the PMI results?19 May, 2020  

Currently, the UK economy is being restarted, but there are a lot of setbacks in this process and a lot of people are confused and disoriented with what to...