Overall, GBP/USD is moving across. Recently, GBP/USD trended lower and broke the key level of 1.31 after the Bank of England’s (BoE) interest rate decision.
The BoE held interest rate unchanged at 0.75%. Initially, market participants reacted positively towards the pound but the bullish move lasted no more than 5 minutes, eventually losing back the gains and trended lower amid a no-deal Brexit possibility.
The U.K. Parliament will be voting for Prime Minister Johnson’s Withdrawal Agreement later at 2230 (SGT).
One of the major changes made to the previous bill is that the government will be prohibited from extending the Brexit transition period beyond 21 December 2020. During the transition period, a trade deal between the U.K. and EU will be discussed. Thus, In a scenario whereby a trade deal could not be established by the end of the transition period, a no-deal Brexit may take place.
GBP/USD’s next support level is at 1.29800 and the next resistance level is at 1.31700.
Stay out of GBP/USD for now.
The BoE held interest rate unchanged at 0.75%. Initially, market participants reacted positively towards the pound but the bullish move lasted no more than 5 minutes, eventually losing back the gains and trended lower amid a no-deal Brexit possibility.
The U.K. Parliament will be voting for Prime Minister Johnson’s Withdrawal Agreement later at 2230 (SGT).
One of the major changes made to the previous bill is that the government will be prohibited from extending the Brexit transition period beyond 21 December 2020. During the transition period, a trade deal between the U.K. and EU will be discussed. Thus, In a scenario whereby a trade deal could not be established by the end of the transition period, a no-deal Brexit may take place.
GBP/USD’s next support level is at 1.29800 and the next resistance level is at 1.31700.
Stay out of GBP/USD for now.