An upward move for GBPUSD soon?

AFTER weeks of discussion back and forth on whether the United Kingdom (UK) was going to push through with an exit from the European Union (EU) on Oct 31, European Council (EC) president Donald Tusk announced that the EC has agreed to a "flextension" which allows the UK Parliament more time - to the end of January 2020 - to understand the deal that has been brokered by Prime Minister Boris Johnson.

However, this is on the agreement that there would be no more negotiations on the deal following two years' worth of deliberation on the terms of exit between the UK and the EU. Following the news of the "flextension", Mr Johnson has pushed for a snap election which has been agreed by the UK Parliament with the election to take place on Dec 12. Largely seen as a pre-Christmas gamble by Mr Johnson, the results of the election would determine the fate of the UK and the Brexit journey.

Following the news that a deal was reached, the GBPUSD rose and broke through the resistance of 1.2760 before reaching a four-month high of 1.3013. The price of GBPUSD has come off this level and retraced to 1.2790 on the daily charts before bouncing back up. The current price of GBPUSD at the point of writing sees it perched at 1.2960 with possible legs to take it to re-test the recent high of the aforementioned 1.3013 level.