Critical Brexit Vote
Hello traders,
As you can clearly notice, sterling has been very volatile already ahead of Brexit vote.
The pair is trading now at 1.284 down 0.17%.
It is already widely expected that PM May will lose the vote tonight, the critical question here is by how much.
A defeat by over 100 votes is considered a major threat to the brexit deal and will drag sterling lower.
Therefore 2 scenarios exist:
1st: PM May loses by 100 votes or more ----> GBP/USD sharp decline to 1.25 and 1.20 in extension ( depends on the outcome ).
2nd: PM May loses by less than 60 votes ---> GBP/USD might trade sideways up and down ( also depends on the outcome ).
I advice to stay away from this pair as very high volatility is expected as well as wide spreads.
Trade safe and Good Luck
As you can clearly notice, sterling has been very volatile already ahead of Brexit vote.
The pair is trading now at 1.284 down 0.17%.
It is already widely expected that PM May will lose the vote tonight, the critical question here is by how much.
A defeat by over 100 votes is considered a major threat to the brexit deal and will drag sterling lower.
Therefore 2 scenarios exist:
1st: PM May loses by 100 votes or more ----> GBP/USD sharp decline to 1.25 and 1.20 in extension ( depends on the outcome ).
2nd: PM May loses by less than 60 votes ---> GBP/USD might trade sideways up and down ( also depends on the outcome ).
I advice to stay away from this pair as very high volatility is expected as well as wide spreads.
Trade safe and Good Luck
Ramzi Abou Abdallah, CFTe, CMT
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