On the eve of trading the GBP/USD pair, it was able to rebound from a 3-week low against the background of the release of positive news on Brexit. Today, sterling trades against the dollar near the $1.29 mark.
According to experts, the dynamics of the sterling rate indicates that investors still hope that the uncontrolled withdrawal of the United Kingdom from the European Union will be avoided.
British Prime Minister Theresa May said during a speech yesterday in the House of Commons that she needed more time to negotiate with the EU on Brexit, as reported by Reuters.
“If an agreement with Brussels is not reached before February 26, members of parliament will be able to vote on options to resolve the situation on February 27. Negotiations are at a critical stage. Now we all need to remain calm in order to achieve the changes requested by the House of Commons and to conduct Brexit on time”, May said.
It is not excluded that parliamentarians can support the deal promoted by the head of government if the agreement on the so-called “bet stop” will be temporary. In particular, representatives of the Labor Party led by Jeremy Corbyn are inclined to believe this.
If the belief that the British parliament will not allow an unregulated Brexit, it will only strengthen the possibility of repeating the sharp rise in GBP/USD pair. In this case, purchases of the British currency on the breakout of the resistance levels at 1.295 and 1.3 will become relevant.
The material has been provided by InstaForex Company – www.instaforex.com