The pound cannot cope with the growing tension. Will Brexit be moved?

According to the latest reports, there is a shift suggestion Brexit. The topic practically does not get off the headlines. Today in the currency summary of the week we pointed out that the pound rebound is only possible thanks to the clear and stable position of those in power. Despite the more flexible approach on the part of Boris Johnson, the pound still dives lower and lower.

MPs suggest 3 months

British MPs, outraged by the suspension of their deliberations, today demanded that the exit from the European Union be postponed for three more months. Perhaps they are hoping that England's divorce with the community will take place on more favorable terms and, above all, with the agreement of both parties. The specter of a hard Brexit is still real, although relatively smaller than recently.

Without a contract, don't move

Boris Johnson's move to suspend Parliament's proceedings for several weeks was interpreted as an attack. This initiated numerous talks between parliamentarians, the main topic of which was the creation of a law preventing the UK from leaving the Community without an agreement. The problem is that the idea was quickly negated and replaced by a three-month delay in Brexit. Therefore, we are waiting for the first reports confirming this move.

Down again

The course seriously dived today around the designated (in currency summary) support. The 1.21451 level has been intensively exceeded. At the time of writing the article, the course is trying to stop 1.20609. At the moment, it doesn't seem like the situation will change radically.

Chart GBP / USD, H4 interval. Source: xNUMX XTB xStation

All attention in the coming days will be on the political situation in GBP. As you can see, macroeconomic data do not have much importance in the market compared to political tensions in the country. How will the pound affect the confirmation of the Brexit postponement by another 3 months? It is difficult to find an unambiguous answer here, especially after today's reaction to this news. There is a good chance that the GBP will replace today's declines on the wave of enthusiasm. Some investors with a delay of several weeks will see an opportunity to resume talks and, above all, to sign an agreement. On the other hand, it may be like today, where a wave of panic in the continual delay in leaving the EU will pour out on the market at the least expected moment.