The British pound has risen to its highest trading level against the US dollar since September 2018, after British Prime Minister Theresa May confirmed that Article 50 could be extended for a limited period. The following GBPUSD analysis reveals what is next for the pair.
February 27, OctaFX – Pound sterling continued to rise in overnight trading as traders grew confident that the country will avoid a no-deal Brexit.
In a speech to Parliament yesterday, Theresa May said that she was prepared to ensure that the country avoided a scenario where a deal wasn’t agreed. In recent days, the Prime Minister has been under intense pressure from members of her own party.
Pro-EU Conservatives had threatened to resign in protest of a no-deal Brexit. This decision came after a secret government report showed that the country’s economy would be significantly affected in case it leaves without a deal. Today, traders will continue to focus on the progress of these talks.
The GBPUSD pair remained close to the YTD high of 1.3288 as traders waited for the next action by Theresa May. On the daily chart, the pair is above all the short and medium-term moving averages.
At the same time, the RSI has moved close to the overbought level of 70. The pair’s movements today will depend mostly on the statements that emerge concerning Brexit.
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