May 16, 2019
Pressure Pushes the GBP Lower
The next Brexit vote will take place on the 15th of June and interestingly, until now, no progress has been made. As a result, since the United Kingdom has not yet officially left the EU, they will participate in the upcoming EU elections. It is expected for the Brexit Party in the UK to win these elections. This party wants a ‘no Brexit ‘scenario so this could complicate matters even further. In addition, the Prime Minister of the UK, Theresa May, will meet with other parliament members today and they are expected to ask May to resign.
These events have put major pressure on the British pound (GBP) and the GBP/USD pair is currently trading around 1.2828, with strong downside momentum. If the pair breaks below 1.28, more downward momentum is expected. Meanwhile, other GBP currency pairs are being impacted, such as the EUR/GBP. This pair is currently trading with upside momentum as a result of the weaker GBP and the next target for the EUR/GBP is 0.88. Should the pair break above this, more momentum could be generated. Global traders and investors should focus on the GBP currency pairs in their trading activities.