Theresa May promises to step down like David Cameron
Pound Sterling
The British government and the Pound along with them seem to be totally confused on what action to take. The Pound has been in a flat and the British parliament has also been undecided on what direction they plan to take things. It has been a long and unproductive 2.5-year ordeal after the initial Brexit vote. The outcome is worrisome, Prime Minister Theresa May announced her intention to step down from the role of PM if she could get support for her Brexit proposal. It’s strange it had to come to this, the previous Prime Minister David Cameron also stepped down because of Brexit. There are many distractions to keep traders busy and no one knows what to make of the possibility of a new Prime minister. Could this solve the issue of Great Britain leaving the EU? Probably not. Will this help GB make new trade agreements with the surrounding countries, not to mention the rest of the world? Probably not.
Parliament voted on the possibility of majority support for any available solution. The outcome was no majority support for anything: no deal, no second referendum, no new common market, no UK customs union or anything else. This seriously undermines stability for Sterling and the UK markets for the foreseeable future. Both the EU and GB are equally interested in a positive outcome. As long as we avoid the destructive no-deal Brexit, the Sterling will find footing for a recovery.
But, if a proper trade agreement with the EU is not outlined there will be serious issues of economic stability. If British companies do not have access to trade partners as their EU counterparts have, Great Britain will be a begging nation open to anyone with half a desire to make trade agreements. Their neighbor Norway, part of the European Free Trade Association, has publicly stated that they do not want Great Britain a part of EFTA; “They are a bully” and “the benefit is just not there”.
The Sterling broke through the uptrend trendline and seems to be consolidating in a triangle pattern. If price stays below 1.31114, we could have a continuation to the downside and test 1.30000.
The British government and the Pound along with them seem to be totally confused on what action to take. The Pound has been in a flat and the British parliament has also been undecided on what direction they plan to take things. It has been a long and unproductive 2.5-year ordeal after the initial Brexit vote. The outcome is worrisome, Prime Minister Theresa May announced her intention to step down from the role of PM if she could get support for her Brexit proposal. It’s strange it had to come to this, the previous Prime Minister David Cameron also stepped down because of Brexit. There are many distractions to keep traders busy and no one knows what to make of the possibility of a new Prime minister. Could this solve the issue of Great Britain leaving the EU? Probably not. Will this help GB make new trade agreements with the surrounding countries, not to mention the rest of the world? Probably not.
Parliament voted on the possibility of majority support for any available solution. The outcome was no majority support for anything: no deal, no second referendum, no new common market, no UK customs union or anything else. This seriously undermines stability for Sterling and the UK markets for the foreseeable future. Both the EU and GB are equally interested in a positive outcome. As long as we avoid the destructive no-deal Brexit, the Sterling will find footing for a recovery.
But, if a proper trade agreement with the EU is not outlined there will be serious issues of economic stability. If British companies do not have access to trade partners as their EU counterparts have, Great Britain will be a begging nation open to anyone with half a desire to make trade agreements. Their neighbor Norway, part of the European Free Trade Association, has publicly stated that they do not want Great Britain a part of EFTA; “They are a bully” and “the benefit is just not there”.
The Sterling broke through the uptrend trendline and seems to be consolidating in a triangle pattern. If price stays below 1.31114, we could have a continuation to the downside and test 1.30000.
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