This week was another turbulent episode of the Brexit saga. After the Parliament failed to approve the Brexit deal for the third time, its indicative votes on Monday resulted in another impasse, with pro-Remain members failing to come around to any of the four offers. Similar to the government's agreement, it did become closer, but not enough.
On Friday, UK Prime Minister Theresa May proposed a delay of Brexit- from April 12th to June 30th: a timetable depended largely on her ability to reach a rapid agreement with Labour on a Brexit compromise. The prime minister had offered talks with Mr Corbyn on Tuesday in a dramatic about-turn, after recognising that a majority of MPs would not back her Brexit deal. The move led to fury among many Conservative MPs , including the former foreign secretary Boris Johnson, who accused her of “entrusting the final handling of Brexit to Labour”.
They are refusing to come back to the table unless the Tories agree Britain should stay in the EU customs union after Brexit - and would boycott further talks if the Government doesn't soften its position. That would breach one of Mrs May's biggest red lines and enrage Tory MPs because it would stop Britain striking its own trade deals.
The collapse of talks could undermine the PM's chances of securing a Brexit delay from Brussels because EU leaders insist she must present a plan for the use of such extra time.
As the H2 chart on GBPUSD is forming clear resistant and support levels, traders can expect the market to continue its recently repetitive pattern in the next week since these levels logically match with the current fundamental data on Brexit. In our interpretation, technically the 14 suggests a long retrace to the 1.313 level and then may crash down to its original 1.300 support, even further if the Tories and the Liberal continue fail to compromise.
Still, Brexit drama may vary, if there is any sign of positivity in negotiations, we could see the price breaks through the 1.313 level and rises to the 1.326 .
With Brexit still looming over the GBP, any progress during this time is crucial for traders. Our advice is that traders should be more focused and stay updated to the world’s economy.
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