Theresa May was unable to convince Parliament to even consider her current deal
Prime Minister Theresa May was unable to convince members of Parliament to even consider her current deal. While the world contemplates the future political and societal consequences of any failure to move ahead with an orderly Brexit deal, the question before traders and investors is: how will this reflect in the global markets and how will currencies react to this news?
The GBP (British Pound) appears to be poised for a breakdown move aligning with our Fibonacci Arc structures. These arc structures help us to understand where “inflection points” are likely to be in the markets and where bigger moves may initiate. The current Arc level, near current price, is indicating that any failure of an upside move will likely prompt a downside move to near 0.739 – or lower.
The overwhelming vote came down to 391 Against and 242 For the current Brexit deal. It is likely that the British Parliament will continue to break down into warring factions as a contentious future political outcome will play out. The people of Britain are still wanting to complete the Brexit, while it appears Parliament has yet to come to terms with the process.
While we believe this current event will be somewhat isolated to Britain and European nations, there could be a larger contagion if other nations attempt to push their desires to leave the EU as well. Time will tell how this plays out with global investors, but our first impressions are that markets will move lower on this news and that currencies could find new weakness as this chaos continues.
Please take a minute to visit www.TheTechnicalTraders.com/FreeResearch/ to read all of our most recent research – including our detailed 5-part global economic research post. This post is very important because it shows you predicted price levels going all the way into 2021 and highlights why this “new bull market” may just be getting started. Find out why www.TheTechnicalTraders.com is dedicated to helping you find and execute better trades and stay ahead of these market moves.