Prime Minister Boris Johnson is on a collision course with the Members of Parliament. Receiving the formality of Royal Ascent, as the Prime Minister seeks to limit opposing lawmakers, Members of Parliament, chances of halting Brexit on October 31st.
Although, there has long been talk of the gambit, the announcement that the United Kingdom’s Queen Elizabeth accepted a prorogue of Parliament sent the pound plunging. Printing a low at the 1.218 level. Fortunately, an improved mood for the market saved the day, with a recovery bullish movement following the initial downward spike. With the GBP/USD still trading below the 1.2250 level.
GDP/USD daily chart
Looking at the daily chart, we see the pound in a bearish trend, trading below the main daily simple moving average. There has been an upward pushing the last two weeks following the PGB printing a yearly low for 2019 at the 1.2015 level.
GDP/USD 30-minute chart
A 30- minute chart highlights the downward spike we saw following the announcement of the Queens agreement to Boris Johnsons proposal of placing limitations on lawmakers, that may prevent the Brexit scheduled for October 31st. In merely and hour we saw a huge drop from the 1.2281 level, reaching a daily low of 1.2189. since then we’ve seen some back and forth movement with a recovery upward movement to the 1.22469, followed by a swift downward movement, currently trading at the 1.22098 mark.