Will GBP/USD cheer Brexit clarity?

Omkar Godbole FXStreet Contributor

The UK Parliament has passed the Brexit bill, paving the way for the government to trigger Article 50 and begin talks with EU. The bill could receive the royal assent today and become a law.

PM Theresa May could trigger article 50 as early as today, although many in the markets believe that May would do so at the month end.

In the recent past, we have seen that the British Pound loves Brexit clarity. The pattern could be repeated today. Furthermore, reports are doing the rounds that PM May is set to reject Nicola Sturgeon’s plans for a new Scottish referendum.

Hence, the weakness in the GBP/USD pair seen in the Asian session could be short lived. The pair was offered earlier today at the 10-DMA level of 1.2220 and was last seen trading around 1.22 levels.

GBP/USD Technical Levels

A break below 1.2182 (5-DMA) would open doors for a sell-off to 1.2132 (Mar 9 low) and 1.21 (zero figure). On the other hand, a breach of resistance at 1.2220 (10-DMA) could yield a revisit to 1.2251 (previous day’s high), above which the gains could be extended to 1.2307 (Mar 2 high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H	Bullish	Neutral	Low
4H	Bullish	Neutral	Expanding
1D	Bullish	Neutral	Expanding
1W	Bearish	Neutral	Low
Updated Mar 14, 00:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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