Brexit Vote Could Lead to Potential Upside Breakout

Much of the trading is focused on ranges as opposed to breakout with follow through potential. Moreover, while technicals are quite insightful to herd psychology, the fundamentals will be driving markets going forward in the next 24 to 48 hours ahead of us. This includes assets mostly affected by ongoing themes, such as the pound (GBPUSD) which has primarily been driven by Brexit. Luckily for those looking for a less choppy trading environment, traders will have significant clarity given to it with the upcoming votes in the House of Commons which will see if Theresa May can exchange her position as prime minister in exchange for other conservative members to vote for her bill that they had already rejected twice. Given reports that members of her party who were once against the bill may be for it like former Foreign Secretary Boris Johnson, the chances of a no deal Brexit have swung wildly in the other direction away possible hard accidental no deal Brexit towards a potential deal. But if this is not passed, then it is difficult to see Parliament agree upon any deal that the EU would be okay with. In spite of this, most analysts believe that a deal will be done even if the House of Commons does not pass May’s deal. Either way, GBPUSD has priced in a deal and volatility has significantly stalled.

For a few more words on the matter and EURUSD, check out anthonylaurence.wordpress.com/2019/03/27/brexit-leans-back-towards-a-potential-deal-but-requires-3rd-house-of-commons-vote/

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