Sterling trending points
- Sterling had capped itself in a tight range between 1.2770-1.2875, further move is highly unlikely ahead of EU27 leaders meeting due this weekend
- Proposed 26-page, Brexit political sentence might not make it through the House of Commons
- Sterling gets more sclerotic, as political noises are increasing
As GBP has been stuck in a tight range followed by Brexit draft rubberstamping, UK PM May would be leaving for Brussels this weekend for further talks with the EU Commission president Jean Claude Juncker on that Draft Brexit agreement, as it was told that many things required further attention, before UK goes for a Brexit, on March 29th.
On Thursday, the UK PM May had said in an announcement that the deal was “within their grasp” and it had also been fulfilling the mandates given to the government. However, yet again, the PM’s enthusiasm did not match with others, who repeatedly told that the bill would not pass through the House of Commons. As a last tweak in the recent political tottering, the Spanish Prime Minister added his saying in the Brexit and he had told that the Spain would vote against the Brexit draft unless, Spain have a say on the future of Gibraltar. As pressures are building over the next week’s decisive moves, GBP had stuck itself in a tight margin between, 1.2770-1.2870.
GBP/USD daily price chart
Yesterday, a positive greenback was experienced by the GBP, yet it was dragged down below towards its key support level at 1.2810, today, enticing a tightened movement.
So far, GBP/USD had been maintaining a tight range this week and the tight range is highly likely to persist in the next week as well. This pair has been trading between 1.2770-1.2925, range, all over the week, while the trade volume is dipped by the US thanksgiving holidays. In the face of a tempestuous political pinnacle, the GBP seems to be maintaining a tight range in the next few days.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]