GBPUSD post Brexit vote
The Pound is in bid mood triggered by May’s defeat in Parliament, following various speculations on further development. Pundits talks about delayed Brexit, second referendum, no-deal Brexit – all sort of scenarios. Today’s key event is May leadership vote later in the evening.
The vote is not likely to end bad for May. More important is what kind of behind curtain cross-party talks are in place and what is achievable solution, acceptable for EU. Headlines are focused mostly on delay, although it is unlikely due to upcoming elections to EU Parliament.
Price action is chaotic. Pound made spectacular round-trip yesterday following the vote and still remains bid. In the long-term I am bullish on GBP as pair demonstrated avid resilience last weeks during all Brexit saga. Yet, there are strong barriers 1.2895, 1.2940 and 1.3000 ahead and price need some more positive news to overcome those.
Below are supports 1.2785 and especially cluster 1.2740-1.2680 which sustained yesterdays vote. This is a buy area and my view to is to buy every time price approaches these levels.
Have a nice day !