As the Brexit deadline approaches and the disagreements widen, some voices in UK politics are rumored to secretly prepare for yet another snap election. In the open, politicians dismiss the idea for an election but it is clear that they grow wary and nervous that one could creep up. Prime Minister Theresa May is losing support and many believe that she won’t be able to deliver the type of Brexit that would be acceptable to both sides of the aisle. The British Pound dropped to a twelve-month low, is this a great buying opportunity?
The UK held a referendum in 2014 which was followed by an election in 2015. 2016 saw another referendum, the famous Brexit one where the UK decided to leave the European Union, and then another election in 2017 which saw Labour surprise as Jeremy Corbyn took 40% of the vote and almost prevented Theresa May from forming a her government. According to Professor of Politics at Queen Mary University of London, Philip Cowley, the chance for an election in 2018 currently stand at 25%.
The biggest divide is between those who wish to leave the customs union as was the original plan, and one of the driving forces of the Brexit outcome and those who prefer to remain in the customs union. PM May asked both sides to work out an agreement which can be delivered to the EU, but no agreement is in sight. Given that Brexit is roughly ten months away, some believe that the process is too advanced for a leadership change. Pro-Brexit Tories may have the numbers to push for a replacement of May, but the dynamics would not change.
Some analysts note that the British Pound could weather another election and grow increasingly bullish on the currency yet again. Is this the time to buy and re-enter one of the strongest trends of the post-Brexit trading era? There are calls for a rally of over 1,000 pips by the end of 2018. Open your PaxForex Trading Account today so you can access the world of forex trading and create a better life for you and your loved ones.
Since there is a deadlock in negotiations, there is a group of Tories who think that an election victory would allow the process to move forward as a new PM would ask the public to support the final push through negotiations. On the contrary, others claim that the public may be tired of voting and the the winner would be the Labour Party under Corbyn which would mean a soft Brexit or no Brexit at all. The threat of a Labour victory is the only chip PM May has left to play in order to force both side of the Conservatives into a compromise. Is a UK election in 2018 possible? The next few months will answer this question and here are three forex trades which will boost your profits.
Forex Profit Set-Up #1; Buy GBPCHF - D1 Time-Frame
Following a failed breakout above its horizontal resistance area, the GBPCHF entered a healthy correction which is now faced by its ascending support level. In addition, price action is gathering support from another major horizontal support area which is located in the middle of its current trading range. Forex traders are recommended to place their buy orders around the ascending support level in order to capitalize from the expected advance.
The CCI has plunged deep into extreme oversold conditions, but has already started to recover from its lows. A push above the -100 mark should be expected which may be followed by a rise in buy orders for the GBPCHF. Follow the PaxForex Daily Forex Technical Analysis in order to receive the most profitable technical trading set-ups every day.
Forex Profit Set-Up #2; Buy GBPCAD - D1 Time-Frame
This currency pair has corrected from its horizontal resistance area down into its horizontal support area. This move has now covered its current trading range and forex traders should prepare their trading account for a sentiment change to bullish. The GBPCAD has plenty of upside potential with limited downside risk from current levels and forex trader are advised to spread their buy orders inside of its support area.
The CCI is trading in extreme oversold conditions, but a positive divergence has formed which is a strong bullish trading signal. A momentum change is expected to follow which will drive the GBPCAD higher. Download your PaxForex MT4 Trading Platform now and add this currency pair to your account before it will accelerate to the upside.
Forex Profit Set-Up #3; Sell EURGBP - D1 Time-Frame
The EURGBP bounced from its horizontal support area into its descending resistance level from where this currency pair is facing an increase in bearish pressures. A new push into support is expected to unfold and momentum may be strong enough to force a breakdown. Forex traders should sell the rallies in the EURGBP once price action will meet its descending resistance level which originated inside its horizontal resistance area and marked the intra-day high of its current trading range.
The CCI has spiked from its most recent low and is now approaching the 0 level. Given the retreat in bullish sentiment, this momentum indicator is expected to crash in unison with price action. Subscribe to the PaxForex Fundamental Analysis an profit alongside out expert analysts, earn over 500 pips per month and receive each trading day’s most profitable fundamental trading set-ups.