The Pound was skyrocketing in the emotion of the moment. Overview for 19.04.2017
On Wednesday, the GBP/USD pair is retreating a little bit after skyrocketing the day before; the Brexit can’t be cancelled that easy.
The British Pound is falling a bit against the USD on Wednesday. The current quote for the instrument is 1.2815. Yesterday’s high was at 1.2906, the highest since October 3rd 2016.
The Pound is still moving close to its seven months’ highs, but the market is getting rid of the emotions slowly. Yesterday, Theresa May, the British Prime Minister, announced that it was necessary to hold early parliamentary elections on June 8th 2017. Initially, these parliamentary elections were set to take place only in 2020. As political sociologists say, conducting the elections three years earlier may make the Brexit not so tense by providing the political unity before the active phase of the procedure. In case May finds herself in majority, negotiations with the European Union about better conditions of the country’s exiting the alliance may be more productive.
It is thought that the May’s winning these elections will be positive for the Pound. So far, the situation is setting with her.
This was exactly the reason why the Pound skyrocketed yesterday. Most likely, this political factor will remain the major one for the GBP/USD pair. Alter, the instrument is expected to start a proper technical correction.
RoboForex Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.