Brexit not fearful for a pound. The chance of a "no deal" is decreasing

The investors' eyes are turned more and more towards the date of 29 in March. Despite the many uncertainties associated with the exit of the United Kingdom from the European Union, it does not translate into a pound exchange rate. Since the beginning of the year, we have been observing its growth by almost 20 in relation to the zloty. The market, lack of understanding in the matter, may judge "conscious", hence the lack of major pivots. What's more, the risk of Britain's chaotic separation from the EU is decreasing. If the forecasts are wrong, we can count on a specific currency discount.

Less and less Brexit supporters?

Three significant MPs from Theresa May's party. They are to create an independent group. In the short term, this should not have a significant impact on the pound rate. The position of Secretary of Hunt is a positive signal coming from the United Kingdom to normalize the situation on the markets. He calls on European leaders to avoid hard Brexit at all costs, that is, disagreement between the parties.

Chance to "No deal" decreases

According to experts, the chances of hard Brexit definitely decrease. Both representatives of the United Kingdom and the European Union emphasize the importance of finding a consensus between the conditions presented by the parties. 21 March will be an opportunity for this. The compromise will be available at the summit of European leaders. This meeting is the last chance to reach an agreement. In the light of these events, the pound gives the impression of nervous rebound to new information. Therefore, it is not a surprise that the answer to the question "what's next with the pound?" Will be the results of negotiations between the United Kingdom and representatives of the European Union. The official split should not have a significant impact on the market or the pound.

GBP / USD chart, H4 interval