British PM Theresa May survived the no confidence vote from her own Tory Party yesterday evening as 200 voted that they do have confidence in her while 117 voted that they have no confidence. This was more than enough for her to stay on as PM as there can’t be another no confidence vote for twelve months from her party. The opposition Labour Party may decide to push through a no confidence vote in her abilities which could lead to a new general election. This is now up to Labour leader Corbyn who believes that May’s handling of Brexit so far has given his party a chance to move into 10 Downing Street, where the office of the Prime Minister is located.
After the vote, May stated that “Whilst I’m grateful for that support, a significant number of colleagues did cast a vote against me, and I’ve listened to what they’ve said.” This doesn’t resolve the key issue for her which is getting her Brexit deal through Parliament. She had to give concessions to her party such as promising not to stand in the next general election. Matt Hancock, the UK Health Secretary, noted that “She said that in her heart she’d love to fight the next election, but she knows that she can’t.”
The backstop for the Irish border, which is part of the current Brexit deal, remains one of the biggest issues and the DUP made it clear that without a fundamental change they won’t back May in Parliament. Without the support of the 10 DUP lawmakers, May lacks a majority. Marcus Fysh, a Tory Brexiteer, added after the vote that “It doesn’t matter that she’s won. She can’t command the DUP and that leads to a vote of confidence in the government, a near-term general election. We’re not going to back her deal, so in practice she can’t carry on.”
As the no confidence vote was announced, the British Pound staged its biggest rally in six weeks which showed that forex traders were convinced that May would win the vote and remain PM. Where will the British Pound move from here? Can the rally continue? Open your PaxForex Trading Account now and take profitable positions with the help of our expert analysts who do the hard work so you can profit with ease.
May asked the 1922 Committee, which is in charge of matters such as a no confidence vote, to giver her enough time to finish Brexit. James Cleverly, the Deputy Conservative Party Chairman, confirmed that May will not stand in 2022 election and stated “She recognized that a lot of people aren’t comfortable about her leading us into another general election.” May left Room 14 following her plea for time and three hours later she found out that it was granted. PM May survived this vote, but she is now a lot weaker than she was before. Her inner circle will continue to pressure her and while she won this battle, it appears as if she has lost the war. Here are three forex trades which will boost your pips and win you any vote of confidence!
Forex Profit Set-Up #1; Buy GBPUSD - D1 Time-Frame
The GBPUSD remains a very good trade as each drop is followed by a nice rally. Price action initially dropped and formed a new horizontal support area, but quickly completed a breakout above it. After yesterday’s strong advance, forex traders continue to bid this currency pair higher as bullish momentum is on the rise. Short-covering adds to buying pressure and the GBPUSD is now expected to move back into its secondary descending resistance level. Buying the dips from current levels is recommended.
The CCI already pushed out of extreme oversold conditions and carries enough bullish momentum to eclipse the 0 mark which would result in a momentum change, supporting further upside in price action. Subscribe to the PaxForex Daily Forex Technical Analysis and simply follow the trading set-ups posted by our expert analysts!
Forex Profit Set-Up #2; Sell EURGBP - D1 Time-Frame
After a brief push into its horizontal resistance which also resulted in the formation of a double top chart pattern, the EURGBP quickly completed a breakdown. Bearish pressures are now on the rise after price action also descended below its secondary ascending support level. This currency pair is now anticipated to extend its slide and move below its primary ascending support level until it can challenge its next horizontal support level. Forex traders are advised to sell the rallies in the EURGBP.
The CCI initially spiked together with price action, but a breakdown below the 100 mark and out of extreme overbought territory followed. This momentum indicator is now on its path to a bearish moment change with a push below 0. Follow the PaxForex Daily Fundamental Analysis and let our expert analysts guide your forex portfolio to over 500 pips in monthly profits!
Forex Profit Set-Up #3; Buy GBPAUD - D1 Time-Frame
As the Australian Dollar is set to come under pressure due to the ongoing trade war between the US and China, the GBPAUD is poised for a solid advance. Price action moved into its horizontal support area which is being intersected by its primary descending resistance level, but a breakout materialized. Momentum is now likely to complete a second breakout above its secondary descending resistance level from where the GBPAUD can extend its move into its next horizontal resistance level. Buy orders between both descending resistance levels are recommended.
The CCI formed a positive divergence, a very bullish trading signal, which led to the move out of extreme oversold conditions. This technical indicator is now approaching the 0 mark from where a bullish breakout is anticipated. Download your PaxForex MT4 Trading Platform today and join our growing community of profitable forex traders!