Article 50 Brexit court rules against the UK government

Brexit court has ruled out that the UK government must consult parliament in order to trigger Article 50. Will MPs ultimately vote to leave or the Brexit is off the table?

3 November, AtoZForex The High Court (nowadays referred as Article 50 Brexit court) in the UK has announced that the UK Parliament is required to vote on whether the UK can invoke the Article 50 of the Lisbon Treaty process in order to activate the formal process of Brexit.

Article 50 Brexit court against the UK government

This decision by the High Court implies that the government is not allowed to trigger the Article 50 on their own. In addition, the Lord Chief Justice has stated:

“The government does not have power under the Crown’s prerogative to give notice pursuant to Article 50 for the UK to withdraw from the European Union.”

The UK government is appealing this decision, where the further hearing is about to take place next month. The main Brexit backer, Nigel Farage has stated he feared a “betrayal” of the voters, who supported Brexit earlier in June.

Market analysts say that in case the decision from High Court will not be changed, the significant delay could appear in the Brexit process. Moreover, experts believe that the large part of MPs will ultimately vote for Article 50 start, as Brexit was supported by the majority of the voters.

Meanwhile AtoZ Forex academy chief Yagub Rahimov commented the following:

“Any significant delay in triggering Article 50 will mean more delay in Brexit or even possibility of Brexit never happening. Although we can not really project the due course, one thing we can do is to take advantage of the market developments in the due course. Nonetheless, I am very much keen that Article 50 Brexit court rulling will boost the GBP. Thus, as per my analysis in October, long GBPUSD positions between 1.20 and 1.22 levels will give decent returns with targets towards 1.2587, 1.2860 and 1.3030 levels.”

Article 50 court ruling GBPUSD technical analysis Chart 1: Article 50 court ruling GBPUSD technical analysis – click to zoom

UK government to appeal the ruling

The Prime Minister of the UK, Theresa May, has stated that she will invoke Article 50, while officially informing the EU of the UK’s willingness to exit the EU bloc. The EU members have signaled that no negotiations about the terms of Brexit could possibly take place until the Article 50 has been activated.

Gina Miller, the woman who brought the Article 50 case, stated that the government should make the “wise decision of not appealing”. She further added:

“The result today is about all of us. It’s not about me or my team. It’s about our United Kingdom and all our futures.”

Yet, the spokesman for the UK’s government stated that it would certainly appeal the ruling of the Supreme Court, adding:

“The country voted to leave the European Union in a referendum approved by Act of Parliament. And the government is determined to respect the result of the referendum. We will appeal this judgement.”

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