Summary:
- UK lawmakers backed Brady and Spelman amendments
- This may be tricky for the British Pound
- In short term there is a possibility of sales pressure on the pound
Trade: GBPCHF long at market
Stop loss: 1,2970
Take profit: 1,3170
Justification:
We believe that Theresa May with Brady amendment will try to persuade EU authorities to change their mind about the Brexit agreement. On the other hand there were many voices from the EU that the Brexit agreement is not negotiable. This can lead to further uncertainty, despite the fact that the British parliament voted to reject leaving without a deal. We see a possibility that GBPCHF may retest a vicinity of recent high from the end of the last year.
