The pound risks going below $1.27 in the coming days
May 21, 2019 12:24 am
The British pound opened the week with a downside and remains one of the main outsiders of the foreign exchange market. Last week, the GBP/USD pair’s loss exceeded 250 points. It is expected that in the coming session the pressure on the sterling will continue. However, on Monday during European trading, the British currency managed to recover a small part of the losses. GBP/USD was trading around $1.2755 after dropping to $1.2710 on Friday, the lowest since mid-January.
On Sunday, Theresa May announced her intention to make a “bold new proposal” to British lawmakers. Despite the fact that her Brexit deal was rejected three times, the prime minister leaves no hope to enlist the support of Parliament before leaving office.
Traders continue to follow developments around the UK exit from the European Union. Earlier last week, Labour’s leader Jeremy Corbyn announced the failure of negotiations with Brexit Conservatives. He is confident that “interparty negotiations have gone as far as possible, however, have not yet helped overcome significant differences.” In connection with the failure of the negotiations, the main oppositionist confirmed that his party would oppose the Theresa May deal. Voting is expected to take place in the House of Commons of the British Parliament in the first week of June.
Another disastrous vote is likely to lead to the resignation of the current prime minister. With such a development, the chances of fulfilling a hard version of Brexit grows, and the risks of further slowing down the economy of the United Kingdom increase accordingly.
Weak national statistics remain a factor of pressure on the British pound. A report on the consumer price index will be released this week. In case of another decline, the GBP/USD pair may fall below $1.27. With the development of a downward trend, quotes will meet support at around $1.2665.
Meanwhile, the relative strength indicator implies that the pair is oversold. In this regard, the pound’s correctional growth in the coming days is not excluded.
The material has been provided by InstaForex Company – www.instaforex.com
The British pound opened the week with a downside and remains one of the main outsiders of the foreign exchange market. Last week, the GBP/USD pair’s loss exceeded 250 points. It is expected that in the coming session the pressure on the sterling will continue. However, on Monday during European trading, the British currency managed to recover a small part of the losses. GBP/USD was trading around $1.2755 after dropping to $1.2710 on Friday, the lowest since mid-January.
On Sunday, Theresa May announced her intention to make a “bold new proposal” to British lawmakers. Despite the fact that her Brexit deal was rejected three times, the prime minister leaves no hope to enlist the support of Parliament before leaving office.
Traders continue to follow developments around the UK exit from the European Union. Earlier last week, Labour’s leader Jeremy Corbyn announced the failure of negotiations with Brexit Conservatives. He is confident that “interparty negotiations have gone as far as possible, however, have not yet helped overcome significant differences.” In connection with the failure of the negotiations, the main oppositionist confirmed that his party would oppose the Theresa May deal. Voting is expected to take place in the House of Commons of the British Parliament in the first week of June.
Another disastrous vote is likely to lead to the resignation of the current prime minister. With such a development, the chances of fulfilling a hard version of Brexit grows, and the risks of further slowing down the economy of the United Kingdom increase accordingly.
Weak national statistics remain a factor of pressure on the British pound. A report on the consumer price index will be released this week. In case of another decline, the GBP/USD pair may fall below $1.27. With the development of a downward trend, quotes will meet support at around $1.2665.
Meanwhile, the relative strength indicator implies that the pair is oversold. In this regard, the pound’s correctional growth in the coming days is not excluded.
The material has been provided by InstaForex Company – www.instaforex.com
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