Sterling (GBP) Price Action Dominated by Brexit Narrative

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Brexit and Sterling (GBP) News, Charts and Analysis – Webinar

  • EU members demanding an agreement by the weekend or a delay is inevitable.
  • Boris Johnson waits for the Scottish Court’s ruling on the Benn Act.

Brand New Q4 2019 GBP Forecasts and Top Trading Opportunities

Brexit Clock Ticks Down, Priming Sterling Price Action

UK PM Boris Johnson will wait to hear the Scottish Court’s ruling on what the outcome would be if he fails to comply with the Benn Act. The court’s ruling, expected imminently, could even rule that PM Boris Johnson be jailed if he fails to agree with the act, highlighting the Brexit-induced mess in the UK.

Negotiators on both sides continue to engage in Brexit talks but the UK’s recent proposal has so far met a lukewarm response. French President Macron has publicly said that the EU will decide if a deal is possible by the end of the week ahead of the meeting of EU leaders on October 17-18. If no deal is the outcome, PM Johnson will have to ask the EU for an extension, something he still refuses to countenance.

GBPUSD is in a holding pattern and waiting to hear the outcome of meetings at the end of the week. Volatility is expected to ramp up as we near the weekend, putting the recent 1.2204 – 1.2414 range under pressure.

GBPUSD Price Daily Chart (January – October 7, 2019)

The IG Client Sentiment Indicator shows retail traders are 72.0% net-long GBPUSD, a bearish contrarian bias. See how daily and weekly sentiment shifts change GBPUSD bias.

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Sterling (GBP) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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