by Marc Chandler
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Introduction by George Dorgan
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Summary:
The UK High Court defends Parliament’s right to vote before Article 50 is triggered.
The decision will be appealed.
Sterling approached an important resistance as it extended its rally for the fifth session.
| The UK High Court ruled that Parliament has the right to vote on Brexit for Article 50 is triggered. Sterling had appreciated for four consecutive sessions coming into today. It was trading near $1.2350 in anticipation of the decision and rallied to $1.2450 before running out of steam shy of the post-flash crash high (~$1.2470).
As expected the government quickly said it will appeal the ruling to the Supreme Court. That the losing side would appeal the decision was widely known and the Supreme Court made room in its calendar for just this eventuality.
The $1.2450 area corresponds with a 38.2% retracement of sterling’s decline from since early-September. Sterling has also stopped short of the two-month trendline, shown in the Great Graphic that was created on Bloomberg. The 50% retracement is near $1.2640, which is a little above the high before the flash crash (~$1.2620).
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British Pound(see more posts on British Pound, ) - Click to enlarge |
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He has been covering the global capital markets in one fashion or another for more than 30 years, working at economic consulting firms and global investment banks. After 14 years as the global head of currency strategy for Brown Brothers Harriman, Chandler joined Bannockburn Global Forex, as a managing partner and chief markets strategist as of October 1, 2018.
Tags: #GBP,British Pound,Great Graphic
