GBPUSD In The Wake Of A Second Brexit Vote

TL;DR

Amid Brexit volatility, the possibility of a deal and a short extension could be positive for the pound, while a long extension may bring uncertainty.

Transcript

hello my name is Ryan little stone from Forex flow live this afternoon we're going to talk to you about sterling and the midst of the brexit mess that's going on in Parliament my last conversation we had we were speaking about the pound and how risky it was gonna be this week it's gonna be very volatile we've seen that obviously over the last coupl... Read More

Key Insights

• 💷 Brexit-related developments have caused significant volatility in the pound's value.
• 🤝 Possible outcomes include a soft Brexit, no Brexit, or a deal, with a no-deal scenario being seen as the least likely.
• 🫵 A short extension indicates the possibility of a deal and is viewed positively for the pound.
• 🪘 A long extension would prolong uncertainty and could dampen pound strength.
• 🥺 Breaking the level of 135 would lead to an acceleration of the pound's upward movement.
• ❓ The outcome of the extension vote will be crucial for determining the next phase of Brexit.
• 🤩 Investors are advised to stay updated on headlines and key levels, keeping stops tight and staying within their comfort zones.

Questions & Answers

Q: What has been the recent volatility of the pound due to Brexit?

The pound has seen significant volatility, shooting up from the 130s to the high 130s, reflecting the uncertainty and nature of Brexit developments in Parliament.

Q: What are the potential outcomes of Brexit?

The possible outcomes include a soft Brexit, no Brexit, or a deal. The risk of a no-deal Brexit remains, although it is seen as having the lowest chance by the market.

Q: Why is a short extension positive for the pound?

A short extension suggests that a deal is still in play, potentially leading to more positive results for the pound. Talks with key players and the possibility of a deal being done contribute to this optimism.

Q: What are the implications of a long extension?

Although not desired by many, a long extension would prolong the uncertainty surrounding Brexit, dragging out the process and resulting in a continuation of the volatility experienced in the market.

Summary & Key Takeaways

• The pound has experienced significant volatility due to Brexit-related developments in Parliament.

• Possible Brexit outcomes include a soft Brexit, no Brexit, or a deal, with a no-deal scenario remaining a risk.

• A short extension would signal the possibility of a deal, while a long extension may prolong the uncertainty surrounding Brexit.