Brexit headlines, in addition to profit booking activity, is bringing the currency pair of GBP/USD back to 1.28 levels where it has maintained a steady price action across last week.
On Friday, users saw the GBP/USD pair attempt to breach 1.30 handle, while the effort was successful, uncertainties surrounding future of Brexit progress coupled with profit booking action post after a week-long bullish price action saw the pair taking a corrective rally.
Now the rally is extending into early Asian market hours on Monday, but British Pound did manage to limit declines above mid 1.28 handle post.
During the weekend, the flurry of headlines hinted at multiple possibilities for Brexit proceedings during Monday’s parliamentary meet in the United Kingdom. Friday’s cross-party talks initiated by PM May failing to generate any positive progress as Irish backstop continued to remain a thorn in proceedings.
Despite headlines and indicators talking at EU’s readiness to provide freshly written clarifications on Irish backstop, the issue hasn’t been resolved in the UK after PM May was unable to guarantee a no hard border scenario between Ireland and Britain.
Monday’s parliament meeting will be expected to see PM May suggesting a second plan, or “Plan B” ahead of parliament session and later create an amendment to be passed in the meeting. If it does, it will prevent the possibility of a no-deal Brexit scenario.
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