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Sep 06 - 12:12 AM
GBP/USD - COMMENT-Boris Faces Trust Issues, GBP/USD Weekly Close Key
First appeared on eFXplus on Sep 05 - 10:30 PM

The pound's sharp 3% rebound from Tuesday's 1.1959 low was inspired by opponents of the government's Brexit-at-all-costs policy coming together.
The next hurdle for Boris is Monday's parliamentary vote on an election, as he argues for an Oct 15 date nL5N25W3B2. The opposition are undecided, but do not trust the PM, so the consensus is that they will vote against his proposal and opt for an election after the Oct 31 Brexit deadline; Click here . This would prevent a hard Brexit following a Conservative victory on Oct 15.
The EU is unimpressed with the UK's Brexit diplomacy, with Ireland saying it has seen no proposals at all nL5N25V3VS.
Boris is focussing on an election, not a Brexit solution. When the dust settles on an election date, there is no way of accurately predicting an outcome.
The Conservatives are favourites, but a coalition excluding them is possible.
Meanwhile the GBP/USD weekly charts are very interesting, with cable currently at 1.2330 and an upcoming bullish key week reversal on a close above last week's 1.2310 high.
This would be a strong positive signal for next week, with a target at 1.2502, 38.2% of the 2019 fall.
The political uncertainty surrounding the election should cap progress around 1.2500 .

gbp sep 6 Click here

Refinitiv IFR Research/Market Commentary


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