GBP / USD: Does the pound have a "plan B"? - ConsultFX

GBP / USD: Does the pound have a "plan B"?


Since early January, the pound sterling has risen in price against the dollar by more than 3%, demonstrating the best dynamics among the G10 currencies.

In this case, most of the growth took place last week.

Against the background of reducing the likelihood of the United Kingdom leaving the European Union without a deal, as well as waiting for the extension of article 50 of the Lisbon Treaty, the GBP / USD pair reached its maximum level for the first time since November last year. However, she could not stay above the level of 1.32, as investors decided to take profits, probably fearing that the euphoria around Brexit had taken the pound too far.


Tonight, the House of Commons should consider a renewed draft divorce agreement, the so-called "Plan B".

The main intrigue is what amendments will be adopted by the parliamentarians to the document and what steps the head of the Cabinet of Ministers Theresa May will take in the future.

Among the existing proposals is to exclude the possibility of the implementation of the "hard" scenario, to postpone Brexit for several months, to limit the action of the "backstop".

Apparently, the Prime Minister has to solve an extremely difficult task, since it is possible that today's vote will be only the beginning of new debates and discussions with the Parliament or the EU. This is likely to increase, then smooth out the uncertainty.

It is assumed that if specific decisions are not made before March 29, then the GBP / USD correction is expected. Clearing the situation, on the contrary, will allow the pair to continue the rally in the direction of 1.32-1.33.

The material has been provided by InstaForex Company -