GBP trending points
- GBP soaring, EU and UK agreed to future ties
- Challenges wobbling ahead, as the agreed document might not make it through the House of Commons
- Euro resilient, as political turmoil remained incendiary
GBP soaring, bolting upwards, as EU-UK agree to future ties
During the Asia Pacific and European session, GBP fired up to a session high, talking out the 1.2900 hurdles, as EU-UK had agreed to a draft text of political declaration regarding future EU-UK ties alongside Brexit. Crucially, in the text, both of the parties have indicated their clear intention and “determination” to replace backstop in future, as the EU has been considering a technological solution to the Irish border issue. Apart from this, the UK and EU have also committed to build single customs territory. Looking forward, this political declaration would now be sent to the EU27 for the approval, in EU summit, due on November 25th, Sunday, as PM May will be bringing the agreement before the House of Commons for a meaningful vote.
As EU-UK had reached a political agreement, GBP upsurge begins and while this report is being written, GBP/USD pair has been traded around 1.2886 region, closing in to its key resistance level of 1.2900. As the U.S. holidays are ahead, a break above 1.2900, would open up the opportune moment for GBP to float above 1.3045.
GBP/USD intraday price chart
lthough GBP has been back on track wheedling, the EUR remains resilient, the EUR/GBP upsurge would likely to lose momentum, as forecasted, as the EURO zone political turmoil remained tardive.
So far, so good, GBP has been experiencing a safe haven for the buyers and this bullish trend would likely to continue for the next couple of days, ahead of U.S. holidays. PM May had also remained tenacious, as she made comments regarding Brexit issue today in a press briefing (GMT. 14.30).
While GBP is being traded at the elevated levels, hurdles are upcoming in the next week, as EU will be forwarding this text to EU summit, due on November 25thfor getting approved, and PM May will have to pass the deal through the House of Commons next week. If this text draft is rejected next week in the house of commons, a “no-Brexit” issue would again remerge, stalling the GBP progress.
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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.]