On Monday afternoon, the GBP/USD pair is trading significantly lower as the market is analyzing updated information regarding the Brexit.
They sold the British Pound last week, but it was today when bears got another reason to put pressure of the GBP/USD pair. The current quote for the instrument is 1.2841. The low of July 6th
Reasons for selling the Pound are really solid. Last weekend, Theresa May, the Prime Minister of the United Kingdom, announced that the country would activate art. 50 of the Agreement with the EU not later than March 2017 and start the process of exiting the Union.
Taking into account that the entire process of preparing the documents and administrating the acts of legislation may take up to years (on the average), the United Kingdom will exit the European Union in March 2019. There are no other important factors, although investors and economists need them so bad. First of all, everyone would like to know if the country’s access to the EU market is going to be easy, what kind of obstacles the UK may encounter, and under what conditions the EU and the UK may have trading relations.
In addition to that, all details and nuances relating to the labor market and other fundamentals are very important. The clearer the British government’s position regarding these issues, the better for the British Pound.
RoboForex Analytical Department
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