As politicians in the UK return from the long Easter holiday weekend, they will have to face the same unresolved issues surrounding Brexit and how Prime Minister Theresa May is handling or mishandling the process. The UK was initially scheduled to leave the world’s largest trading block on March 29th 2019 which was then extended to April 12th 2019. While Brexit has divided the country, it has united it against the deal May negotiated with the EU over the past two plus years. Her Brexit deal was rejected three times by Parliament and May asked for a second extension which was granted until October 31st 2019 under initial protest from France.
The biggest issue with this extension is EU parliamentary elections which will start on May 23rd 2019 which is why many analysts view this as the absolute last date to leave the EU and deliver on the 2016 referendum result which favored Brexit. May has angered many voters and her own party with her mishandling of the entire process as calls for a so called “no deal Brexit” have been stronger than the media has covered. The UK as well as the EU have been perfectly prepared for it and Brexiteers now view their PM as dragging out the process which could kill Brexit altogether.
After May decided to reach out to opposition Marxist leader Jeremy Corbyn, calls for her replacement have increased. Corbyn, while a EU sceptic, favors a customs union with the EU. According to sources, he is in no rush to reach a compromise to push Brexit through and even favors to partake in EU parliamentary elections as it will keep the UK with close ties to the EU. May is now losing close allies due to her focus on a cross-party compromise which would deliver a soft Brexit or not Brexit at all. Her own party rejected a customs union with the EU as it would prohibit the UK from striking trade deals on its own, which has been a key driver behind Brexit.
May has survived a December attempt to replace her as PM and according to party rules another such vote cannot take place until the end of this year. Tory members are now contemplating to lift this rule in order to seek her replacement sooner. The British Pound has been pressured lower from its March high, is now the time to get bullish? Open your PaxForex Trading Account now and join our fast growing community of profitable forex traders!
A special meeting has been called by heads of local Conservative Party Associations in order to hold a non-binding vote on May’s leadership. 800 of the highest ranking Tory members will cast their vote which may lead to next steps against May. London East Area Conservatives Chairwoman Dinah Glover pointed out that “I’m afraid the prime minister is conducting negotiations in such a way that the party does not approve.” This is likely to be echoed across the majority of the party. In the meantime, former UKIP leader Nigel Farage is leading his new Brexit Party in opinion polls. During the 2014 EU parliamentary elections, his UKIP party won the popular vote and he is now campaigning with the promise of a new revolution in UK politics. As Farage is plotting his next political moves, the leadership pressure rises for May. Here are three forex trades to pressure your profits to the upside!
Forex Profit Set-Up #1; Sell GBPUSD - D1 Time-Frame
As the first Brexit delay shaped up, traders pushed the British Pound to the upside until it reached a new 2019 high in March against the US Dollar. Following the ongoing Brexit uncertainty, profit taking replaced bullish sentiment and price action completed a breakdown below its horizontal resistance area from where its primary descending resistance level took control. This currency pair has been guided lower since then and is now expected to follow through with a breakdown below its secondary ascending support level. This will clear the path down to its next horizontal support level and forex traders are recommended to sell any rallies in the GBPUSD up into the lower band of its horizontal resistance area.
The CCI plunged into extreme oversold conditions, but has since recovered from its lows. It remains below the -100 mark and, as bearish momentum is on the rise, is likely to challenge its most recent low. Download your PaxForex MT4 Trading Platform today and start building a profitable forex portfolio with the help of our expert analysts!
Forex Profit Set-Up #2; Buy EURGBP - D1 Time-Frame
Despite the mounting issues in the Eurozone economy, the Euro was able to end its down-drift against the British Pound. The EURGBP completed a double breakout, above its horizontal resistance area and above its primary descending resistance level, which has resulted in a surge in bullish momentum. Price action is now testing its secondary descending resistance level from where a third breakout is favored to materialize which will lead the EURGBP up into its next horizontal resistance level. Forex traders are advised to buy any dips down into the upper band of its horizontal resistance area.
The CCI has retreated from overbought conditions and remained stable in neutral territory. As bullish momentum is on the rise, this technical indicator is expected to push for new highs. Subscribe to the PaxForex Daily Fundamental Analysis and allow our expert analysts to guide you to over 500 pips in profits per month!
Forex Profit Set-Up #3; Sell GBPCHF - D1 Time-Frame
After bullish momentum dropped and resulted in a breakdown below its horizontal resistance area, the GBPCHF was able to partially reverse direction as it was aided by its secondary ascending support level. The reversal has pushed price action to the lower band of its horizontal resistance area where it is met by its primary descending resistance level. As bearish momentum for the British Pound is on the rise once again, a price action reversal is expected to push this currency pair below its secondary ascending support level and back down into its next horizontal support level. Selling any extension of this advance of the GBPCHF up into the upper band of its horizontal resistance area is favored.
The CCI is trading in extreme overbought territory, but with a loss in bullish sentiment. While it may push a bit higher from current levels, this momentum indicator is anticipated to drop below 100 which is likely to ignite a profit taking sell-off. Follow the PaxForex Daily Forex Technical Analysis and simply copy the recommended traded of our expert analysts!