It is safe to state that the next few weeks before the official March 29th deadline will be chaotic. UK Prime Minister May was unable to push her hated Brexit deal through Parliament on two occasions and Parliament Speaker John Bercow told May that she can’t have a third vote on the same deal. This means in order for her to get a vote in Parliament, fundamental changes in the current deal need to be implemented. The EU stated that there won’t be anymore changes from their side, but a frustrated EU told May she would get one final chance to get the deal approved as part of their own EU Brexit Delay Plan. Since the EU is unwilling to compromise further and Parliament Speaker Bercow won’t allow a third vote on the same deal, May’s team is left with little options.
Brexit Secretary Steve Barclay stated that it is very unlikely for Parliament to vote on another deal this week. This week’s Thursday Brussels Summit is expected to be a heated on as differences among the remaining 27 EU members are wide when it comes to dealing with Brexit. May’s team is seeking legal advice on Bercow’s ruling which dates back to 1604. Robert Buckland, Solicitor General, added that “The ties of the constitution are being stretched to the breaking point, and I don’t want to be part of the generation that breaks those ties. That’s why we have to be extremely careful where we tread.”
Nathalie Loiseau, French Europe Minister, raised the bar and noted that “A no-deal can very well happen. It’s not what we would like to happen. It’s a choice to be made by the United Kingdom. They’ve said no to no-deal and they’ve said no to a realistic deal. They have to choose one of the two options.” German Europe Minister Michael Roth added that “I don’t have any appetite for substance-less, very abstract discussions and negotiations on Brexit. Please deliver, dear friends in London, please deliver. Time is running out and we’re really exhausted by these negotiations and I expect clear and precise proposals of the British government, why such an extension is necessary. It’s not just a game, it’s an extremely serious situation.”
The British Pound remained elevated as traders expect a delay to Brexit. Sources within the EU stated that this will be the most likely outcome during Thursday’s Summit, but the length of any potential extension remains a guess. Can the British Pound push higher as uncertainty grows or is a reversal on the horizon? Open your PaxForex Trading Account today and build a market beating portfolio with the help of our expert analysts!
Bercow’s decision has risked a softer Brexit or no Brexit at all which has angered many MP’s in the pro-Brexit camp. Brexit Secretary Steve Barclay noted that “The Speaker is the referee and it’s important that all of us in the House of Commons respect the authority of the chair. But the Speaker himself has said in previous rulings that we should not be bound by precedent and obviously this is a based on a precedent going back to 1604.” George Ciamba, the Romanian EU Affairs Minister, pointed out that “There is less clarity today than there was yesterday.” The EU seeks Brexit clarity from the UK, but here are three trades which will clearly deliver pips into your forex trading account!
Forex Profit Set-Up #1; Sell GBPJPY- D1 Time-Frame
As optimism for a Brexit delay and avoidance of a no-deal Brexit increased, risk averse currencies such as the Japanese Yen came under selling pressure. This pushed the GBPJPY from its flash crash intra-day low into its current horizontal resistance area. Bullish momentum has been fading and price action may complete a triple breakdown: below its primary ascending support level, below the lower band of its horizontal resistance area and below its secondary ascending support level. This will clear the path to the downside until the GBPJPY will reach its next horizontal support level. Forex traders are recommended to spread their sell order inside its horizontal resistance area.
The CCI already moved out of extreme overbought conditions as bearish momentum is on the rise. Prior to the move below the 100 mark, a negative divergence formed which initiated the increase in bearish sentiment. Download your PaxForex MT4 Trading Platform now and join our fast growing community of profitable forex traders!
Forex Profit Set-Up #2; Sell GBPCAD - D1 Time-Frame
The Canadian Dollar has been strengthening for several trading sessions, but the GBPCAD has lagged the overall trend due to Brexit optimism for a delay. A breakdown below the lower band of its horizontal resistance area may have just initiated a corrective phase which remains in its early stages. Price action, with no support levels in its way, is likely to accelerate to the downside until it can challenge its next horizontal support level. Additionally, the secondary ascending support level is creating a double support level. Selling the rallies in the GBPCAD into the upper band of its horizontal resistance area is the favored trading approach.
The CCI already pushed below the 100 level and therefore out of extreme overbought territory. The formation of a negative divergence, a bearish trading signal, has led to the breakdown in this momentum indicator as more downside is expected. Subscribe to the PaxForex Daily Fundamental Analysis and follow our expert analysts to 500 pips in monthly profits and more!
Forex Profit Set-Up #3; Sell GBPNOK - D1 Time-Frame
The UK and Norway have just announced the signing of a trade deal, regardless of the outcome of Brexit. This is expected to further accelerate the current sell-off in the GBPNOK which began with the breakdown below its horizontal resistance area. Price action is now in the process of completing a breakdown below its secondary ascending support level during today’s trading sessions, which will further increase bearish momentum. The GBPNOK is expected to descend until it will reach its next horizontal support level. Forex traders are advised to sell any potential rallies in this currency pair, up into the lower band of its horizontal resistance area.
The CCI is currently trading in and out of extreme oversold conditions, but remains off of its previous low. This technical indicator is expected to initiate a new push lower as price action is set to accelerate to the downside. Follow the PaxForex Daily Forex Technical Analysis and copy the trading recommendations of our expert analysts who do the hard work so that you can earn the easy profits!
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