The pound sterling was in for a shock yesterday falling over 1% on the day. The currency fell as PM Johnson said that he would ask the Queen to suspend the British Parliament for a month leading up to Brexit. Later in the evening, news broke that the Queen approved the suspension of the parliament. This raises the prospects that the UK could be leaving the EU without a Brexit deal in hand. The sterling erased gains made from the previous days earlier in the week.
GBP/USD Upside Prevails
Despite the declines, GBPUSD looks bullish to the upside. The currency pair fell to the support area of 1.2170 and is promptly pushing higher. However, it will have to break past the previously established highs of 1.2295. A breakout above this level is required for the currency pair to push higher. In the near term, however, watch for GBPUSD to make a firm retest of the support area at 1.2170 ahead of further gains.
