- GBPUSD rises from 3-year low to go above $ 1.23
- Understanding UK House of Commons keeps investors at high alert
- Boris Johnson is ready to turn to the nation on Thursday
It seems everyone wants a piece of British Pound after a series of parliamentary votes sabotaged the attempt by UK Prime Minister Boris Johnson to push Brexit without a deal on October 31. The currency jumped above $ 1.23 against the dollar on Thursday and is expected to rise as the Commons' triple Johnson victory soothes some fears over Britain crashing outside the EU without a deal. However, the upside is ready to face numerous obstacles along the way, especially if early elections are held in the next few weeks, which could lead to Johnson getting a larger majority.
Given that the Pound remains extremely sensitive to political and Brexit developments, more action will be taken on the cards this afternoon, as Johnson will "speak directly to the public, outlining the vital decisions our country faces" as said spokesman at number 1
Another critical part of the complex Brexit equation will be how the European Union responds to another Brexit delay. EU officials have said the latest Brexit talks are nowhere to come, as the UK has not yet submitted a concrete proposal to replace the Irish back. If Brussels simply refuses Johnson's request for a third enlargement of Britain's EU membership, fears of a futile Brexit will come back with a vengeance, ultimately punishing Sterling.
By looking at the technical picture, the Pound regained confidence against the dollar and other currencies of the G10 on Thursday. GBPUSD notes an incredible rebound in daily charts, with prices trading around 1.2330 as you type.
While a solid daily close of 1.2300 is seen opening doors to 1.2380 and 1.2450, the outlook will be heavily influenced by the drama of Brexit and UK politics. If prices fail to break above 1.2380, the table will go back to 1.2300 and 1.2250.
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