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UK PM Johnson Urged to Resign
Earlier this morning the UK Supreme Court ruled that PM Johnson’s suspension of Parliament was unlawful. According to the 11 justices, PM Johnson gave Queen Elizabeth II unlawful advice to suspend Parliament for the Queens Speech. This hindered elected officials to perform their democratic duty, as of the ruling. PM Johnson responded after the verdict that “Obviously this is a verdict that we will respect and we respect the judicial process. I have to say that I strongly disagree with what the justices have found. I don’t think that it’s right, but we will go ahead and of course Parliament will come back.”
The opposition wasted no time to call for his resignation, which is unlikely to happen. MP’s were called back to Parliament immediately. Despite the setback, Johnson vowed to deliver Brexit by October 31st 2019. He added “The most important thing is we get on and deliver Brexit on Oct. 31 and clearly the claimants in this case are determined to frustrate that and to stop that. I think it would be very unfortunate if Parliament made that objective which the people want more difficult, but we will get on.”
“Unlawful, void, and of no effect”
This was the unanimous verdict of the Supreme Court and an unprecedented defeat for Johnson’s government, many start to wonder what this will mean for Brexit and the British Pound. Following the verdict, John Bercow, Speaker of the House, stated that “The House of Commons must convene without delay.” While Parliament may get back to business tomorrow morning, as far as Brexit is concerned, nothing has changed. The impasse with the EU remains as the Irish backstop is preventing a deal to be reached.
What will happen next is unclear. PM Johnson should speak in front of the House of Commons tomorrow and address lawmakers, but nothing has been announced as of yet. Will there be an election as Johnson asked for before the Parliament suspension? Uncertainty has increased, but many agree that another delay to Brexit will not only harm the UK economy over the next twelve months; it will also harm UK politics. Johnson has promised to keep fighting in order to deliver on the result of the 2016 referendum, but does he have the political capital to do so?
“We will not be deterred!”
PM Johnson remains committed as opposition parties roll out the attacks and calls for his resignation grow. Lady Hale, President of the Supreme Court, stated that “The effect upon the fundamentals of our democracy was extreme. It had the effect of frustrating or preventing the ability of Parliament to carry out its constitutional functions without reasonable justification.” Johnson will have to confront this harsh statement as his political position has weakened. Ultimately, the voters may have to decide what will happen next, but an election will take place after the October 31st 2019 deadline.
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Johnson Opposition Grows
The Leader of the Scottish National Party in the House of Commons, Ian Blackford, tweeted “Outside the UK Supreme Court but MPs should be sitting in Parliament. Boris Johnson has lied and lied, now the court has now found him to have acted unlawfully. He must resign.” The SNP is a pro-EU party which held a referendum on independence from the UK. At that time, voters decided to remain part of the kingdom. Following the Brexit referendum, where the majority of Scotland voted to remain in the EU, the SNP is pushing for a fresh vote on independence.
Jo Swinson, Leader of the Liberal Democrats, also took to Twitter and stated “Boris Johnson isn't fit to be prime minister. He's misled queen and country, and unlawfully silenced the people's representatives.” Opposition Leader Jeremy Corby, of the Labour Party, added “I invite Boris Johnson, in the historic words, to consider his position.” This was after accusing him to be guilty of “contempt for democracy and an abuse of power.” Just days ago it was Corbyn who refused to agree to an election.
Dominic Grieve, former member of the Conservative Party who was fire by Johnson, told reported “It's quite clear the prime minister lied to the public about the reasons for the prorogation.” Amber Rudd, who just recently resigned from Johnson’s cabinet added “Despite personal assurances from the PM, the Cabinet was not shown the legal advice around this prorogation. This is an astonishing moment and I regret that the PM, who entered office with such goodwill, went down this route. I urge him to work with Parliament to pass a Deal.”
3 High-Profit Trades for Your PaxForex Trading Account
While the Euro has a range of economic issues of its own, the EURGBP started to lose bearish momentum as price action reached its horizontal support area. Today’s verdict has deflated bears and a price action reversal could follow. A breakout above its horizontal support area is anticipated to lead to a short-covering rally which will result in a move through its primary descending resistance level and into its next horizontal resistance level. Forex traders are recommended to spread EURGBP their buy orders inside the horizontal support area.
The CCI moved out of extreme oversold conditions after a positive divergence formed. This is a strong bullish trading signal and more upside is favored. Open your PaxForex Trading Account now and join one of the fastest growing communities of profitable forex traders!
Where the British Pound is struggling against the Euro, the US Dollar is struggling against the British Pound. Following the verdict, price action in the GBPUSD remained at strong support levels with a bullish bias. The current pause in the strong rally may lead to another leg higher. A breakout above its secondary descending resistance level and lead price action back into its horizontal resistance area. This trade has more upside potential with acceptable downside risk and forex traders are advised to buy any dips in the GBPUSD into its horizontal support level.
The CCI has moved below extreme overbought territory following the formation of a negative divergence. The move has kept this momentum indicator in bullish conditions from where a new move higher is favored. Subscribe to the PaxForex Daily Fundamental Analysis and let our expert analysts guide you to over 5,000 pips in monthly profits!
The Swiss Franc has ended its correction against the British Pound as the GBPCHF moved below its primary descending resistance level. With an increase in bearish pressures, forex traders should expect a sell-off into its horizontal support level. The primary ascending support level is approaching the horizontal support level. As forex traders seek safe haven currencies due to the increase in global issues, this currency pair is expected to move back down into its primary ascending support level. Selling any potential rallies in the GBPCHF into its secondary descending resistance level remains the favored trading approach.
The CCI has completed a breakdown from extreme overbought conditions and momentum is expected to force this indicator below the 0 mark for a bearish momentum crossover. Follow the PaxForex Daily Forex Technical Analysis and simply copy the recommended trades of our expert analysts into your own trading account!