December 5, OctaFX – The British pound declined to the lowest level since 2017 after Theresa May’s government was dealt a blow on Brexit yesterday.
Political turmoil for the current UK government
At Westminster, MPs voted in support of a proposal that parliament should be free to determine what happens next if they reject the proposed deal by the government.
With most MPs being against leaving without a deal, there’s a chance that there could be another referendum. Members will vote on May’s plan on Tuesday next week. Many expect her to lose the vote and possibly her job.
Yesterday, the Advocate General of the European Court of Justice said in a legal opinion that the country was free to revoke its planned withdrawal from the EU.
GBPUSD technical analysis
The GBPUSD pair declined to the lowest level since 2017 in overnight trading. The pair reached an intraday low of 1.2655. On the daily chart, the pair’s RSI is currently at 39 while the pair is below the 100-day and 50-day EMA as shown below.
The current price is an important support level, which could imply a double bottom. Today, traders will focus on Brexit and the UK PMI numbers.
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