The political risks in the UK are escalating

The widespread collapse of the British pound this week was due to political risks in the UK, which worsened after the British government once again failed to find an effective solution to the issue of Brexit. The British opposition demanded that Prime Minister T. May announce the date of resignation, threatening to do it on their own.

So far, May has immunity until December after the unsuccessful announcement of a vote of no confidence last year. The main pressure on T. May comes from the side of Brexit, the deal on which can be realized after her resignation.

In the face of increasing political uncertainty and the lack of a Brexit deal, the British pound remains under considerable pressure, while limiting itself to oversold and attempts to correct for a general recovery of optimism. The GBP/USD pair is limited by oversold and upward divergence, but retains the downward channel of the current month. Support levels: 1.2800 and 1.2750, resistance: 1.2870 and 1.2900.

Fig. GBP/USD chart. Current price – 1.2810

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Hanzenko Anton

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