Breaking: GBP/USD jumps on ECJ opinion that the UK can revoke Article 50 unilaterally

The General Advocate for the European Court of Justice published an opinion in which he said that the UK could unilaterally revoke Article 50. While this is not a binding ruling, these opinions turn into decisions more often than not.

The ruling provides hope for British supporters of remaining in the European Union. Some aspire to reverse Brexit if the withdrawal agreement that UK PM Theresa May reached is rejected by Parliament. The vote is due on December 11th.

The PM said she is focused on passing the Brexit deal and that a rejection by Parliament will cause uncertainty, without specifying which path the government will take in case of the House of Commons voting it down. Fears of a no-deal Brexit weighed on the Pound. The opinion opens the door to undoing Brexit, albeit this decision will reverse the results of the EU Referendum from June 2016. 

GBP/USD is jumping above 1.2750 and reached a high of 1.2786. Resistance is seen at 1.2840, followed by 1.2910. Support awaits at the round number of 1.2700.

GBPUSD ECJ Article 50 December 4 2018

 

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