STERLING (GBP) IGNORES BREXIT NEWS
Former Attorney General and Deputy Dominic Grieve said the House of Commons may not be able to prevent Prime Minister Boris Johnson from withdrawing the UK from the EU on October 31 without agreement, ” the House of Commons can do this, including bringing down the government and creating a new one in its place. “Earlier, Boris Johnson’s senior advisor, Dominic Cummings, said it was now too late to stop a dead end and that even if the Prime Minister lost a vote of no confidence, he could call elections the day after the departure of the UK, making the plan ineffective.
Sterling has taken the latest Brexit news seriously and is starting to revitalize some of its recent heavy losses against the euro and the US dollar, although the two setbacks have so far seemed weak.
The GBPUSD is currently trading just under 1.2200 after touching a 27-month course on 1.2079 last Thursday. The daily chart shows a trend of four higher troughs in a row (Sunday candle excluded) although the momentum is weak and it may decrease at any time. GBPUSD will likely struggle to return above the July 29th peak at 1.2382, except in the event of a positive Brexit or a strong US dollar sellout.
GBPUSD DAILY PRICE CHART (OCTOBER 2018 – AUGUST 6, 2019)
Retail traders posted 77.7% GBPUSD net pound, according to the latest data on customer confidence from IG, a downward indicator. However, recent daily and weekly position changes suggest that GBPUSD may soon reverse.
The EURGBP edged down after peaking nearly two years earlier in today’s session. After falling to a low of 0.8490 in early May, the parity climbed higher with green candles (bullish) dominating the chart. While the euro will be affected by a Brexit without agreement, the decline seems limited and any sale should find support around 0.9050.
EURGBP DAILY PRICE CHART (NOVEMBER 2018 – AUGUST 6, 2019)