Late yesterday evening the UK Parliament voted 329-302 in order to take control over Brexit. The UK was supposed to leave this Friday, March 29th 2019, but is now more likely to depart on May 22nd 2019. This would be on the eve of EU Parliamentary elections and the absolute last date possible for the UK to depart, according to numerous EU officials. This has opened the door to a potentially much softer Brexit and close ties to the EU, which would go against the results of the 2016 referendum. Parliament will now have a series of non-binding, indicative votes scheduled for tomorrow in order to see what type of Brexit deal the House of Commons can unite behind for a majority.
While May 22nd 2019 is seen as the last day for Brexit, the EU has given the UK until April 12th 2019 to either present a case for a much longer extension or leave without a deal after that day. May urged MP’s to deliver on the results of the referendum and warned that “No Brexit must not happen; and a slow Brexit that extends Article 50 beyond May 22, forces the British people to take part in European elections, and gives up control of any of our borders, laws, money or trade, is not a Brexit that will bring the British people together.” In addition she provided the following to options to MPs: “Either a second referendum or an election.” Neither one has support in Parliament and is very unlikely to materialize.
May offered to resign the Premiership if her much hated Brexit deal, the only one currently accepted by the EU, would be pushed through Parliament. Jacob Rees-Mogg, key pro-Brexit figure in her own Tory Party and leader of the European Research Group caucus, agreed to back May’s deal and noted that “I’ve always thought that no deal is better than Mrs. May’s deal, but that Mrs. May’s deal is better than not leaving at all. I’m concerned that her deal is in no way a good deal. Against that there are the threats of a long delay, and many people in Parliament who want to frustrate the result of the referendum. So we are in a very difficult political situation.”
The British Pound initially rallied, but pared gains following the spike, and then saw price action generally push higher. The risk for a no-deal Brexit on April 12th 2019 is still on the table which creates further uncertainty surrounding Brexit. How will the British Pound fare over the next few weeks against other major currencies who struggle with their own political and economic issues? Open your PaxForex Trading Account now and start building a profitable forex portfolio with the help of our expert analysts.
While the olive branch offered by Rees-Mogg is a positive development for May who tries to gather support for her plan, the Northern Irish Democratic Unionist Party which props up May’s government in Parliament, hardened their stance and once again declined to back her deal. DUP Brexit Spokesman Sammy Wilson added that “The agreement means no Brexit and the breakup of the United Kingdom.” He further accused May of using scare tactics over the Northern Ireland issue as an excuse to get support for her deal. Analysts will now focus on how many Brexit hardliners will follow Rees-Mogg and if it will be enough. Michael Fabricant, pro-Brexit MP, noted that May’s deal is the “least worst option.” May loses Brexit control to Parliament, but here are three forex trades will give you control of your profits!
Forex Profit Set-Up #1; Buy GBPUSD - W1 Time-Frame
Overall bullish momentum in the British Pound has enjoyed a steady increase, especially against the US Dollar. This helped push price action out of its bullish support area as a steep, primary ascending support level has emerged. The GBPUSD has now advanced into its secondary descending resistance level from where a further breakout is expected to evolve. With the ongoing US economic slowdown, the GBPUSD is anticipated to extend its advance into its next horizontal resistance level. Buying dips from current levels remains the favorite trading approach.
The CCI has descended out of extreme overbought territory and is currently located just beneath the 100 mark. A further push by this momentum indicator into its most recent highs is expected. Download your PaxForex MT4 Trading Platform today and join our fast growing community of profitable forex traders!
Forex Profit Set-Up #2; Buy EURGBP - W1 Time-Frame
While the overall trend for this currency pair remains to the downside due to the Eurozone economic slump, price action has corrected down to a very strong horizontal support area. With Brexit fog thickening, it is expected that bargain hunters will step in and push the EURGBP above its current support area. A breakout is likely to gather enough bullish momentum to drive price action back into its next horizontal resistance level which is being approached by its primary and secondary descending resistance levels. Forex traders are advised to buy the dips down into the lower band of its horizontal support area.
The CCI is trading in and out of extreme oversold conditions, but a positive divergence has formed which represents a string bullish trading signal. A move to the upside is expected to unfold which will push price action to the upside, but the CCI is likely to remain in negative territory. Follow the PaxForex Daily Fundamental Analysis and allow our expert analysts to guide you through the forex market; earn over 500 pips per month!
Forex Profit Set-Up #3; Sell GBPSEK - W1 Time-Frame
Following a strong advance, bullish momentum in the GBPSEK is fading inside its horizontal resistance area. This is likely to result in a double breakdown, below the lower band of its resistance area as well as below its primary ascending support level. Prospects for the Swedish economy are currently brighter than the Brexit uncertainty which is expected to deliver the push for price action to accelerate to the downside. A move into its next horizontal support level, enforced by its secondary ascending support level, is favored and forex traders are a recommended to sell the rallies into the upper band of its horizontal resistance area.
The CCI already descended out of extreme overbought territory which further added to bearish pressures. This technical indicator is now likely to move further to the downside until it will reach the 0 mark. Subscribe to the PaxForex Daily Forex Technical Analysis and simply copy the recommended trades and profits from our expert analysts into your own forex trading account!