The British pound rose after the Labor party announced that it would support a second referendum. The following GBPUSD analysis reveals what next to expect.
February 26, OctaFX – Sterling rose in overnight trading after Labor leader Jeremy Corbyn said that the party will back a new referendum to ‘prevent a damaging Tory Brexit’. This raised the chances that there will be a second referendum on the future of the UK’s relationship with the European Union.
Senior Labor leaders also announced that they would back a second referendum and aggressively campaign for remaining in the EU. However, there is still a very limited possibility that there will be another vote. In fact, the prospects of another referendum could put pressure on conservative euro-sceptic MPs to support Theresa May’s deal.
GBPUSD analysis: bullish bias above 1.3095
The pair reached a high of 1.3147. On the four-hour chart, this level is above all the short and medium-term moving averages while the RSI has moved to above the 70 level.
The pair will likely continue moving up, with the next resistance level expected to be at 1.3220. This pair will also likely be affected by the Jerome Powell testimony to Congress.
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