The British Pound is under political pressure

The British pound began new week with a decline across the spectrum of the market. The decline in the British currency was caused by the evidence that forty members of the British Parliament caught a vote of no confidence in the British Prime Minister T. May. Because of this news, the probability of a change of the Prime Minister of Great Britain remains very high, since 48 votes are needed to start the change process.

An additional negative factor for the pound were real estate data in the UK, which showed a noticeable decline of -0.8%. Also this week will be a release of significant news on the UK, which will have a significant impact on the British currency. And a similar political aggravation will have a bad outcome for the pound.

As a result, the pair British pound/US dollar is trading near the lower border of the side channel, which lasted all last week. Friday’s move indicated the possibility of a new trend formation and exit from flat, but the fundamental factors made changes, thereby returning the pair to the established channel from 1.3080 to 1.3170.

Recommended for reading: Technical analysis.

Hanzenko Anton