Brexit Bill is Passed however Timetable is Rejected

UK Parliament passed the Withdrawal Agreement Bill. However, they also refused to be handcuffed into Boris Johnson’s timetable of just 2 days to read and debate the matter. The UK’s main opposition party leader, Corbyn, said afterwards that Johnson needs to agree to a reasonable timetable. PM Johnson must now determine whether to accelerate plans to leave the EU with no deal or ask for an extension past the October 31^st deadline. One option Johnson is considering is that the UK accept a 10-day extension, as long as it is the final extension from the EU.

Upon passage of the WAB, GBP/USD bid up roughly 75 pips in hopes that the timetable would be passed. However, as soon as the timetable was rejected, the pair fell from roughly 1.3000 to 1.2832 on concerns that Brexit deal will be delayed further, or even worse, will end with no deal at all.

Source: Tradingview, Forex.com

On a daily timeframe, GBP/USD is currently consolidating just below the psychological level and horizontal level of 1.3000. Although has made attempts to close above 1.3000 over the last 4 days, it has yet to do so. The bottom of the consolidation zone is roughly between 1.2880, which is the 38.2% retracement level from the April 2018 highs to the September 3^rd lows, and 1.2840, which is the 61.8% Fibonacci retracement level from the May 6^th highs to the September 3^rd lows. A break above or below these levels could quickly push the markets 200 pips in either direction.

Source: Tradingview, Forex.com

On a daily timeframe, it appears EUR/GBP still has room to go on the downside towards .8500 to complete the flag formation. However, the RSI is oversold, and with the news today it’s no surprise the pair bounced to give time to the RSI to unwind back into neutral territory before it resumes it descent lower. Horizontal resistance comes in near .8700.

Source: Tradingview, Forex.com

As we get closer and closer to the October 31^st “drop dead” date for a Brexit deal, the situation is going to become more and more fluid. Expect even more volatility as time passes!

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.