The GBP/USD quotations marked a very strong beginning of the new year. The scale of growth even surpassed the August-September period. There was also a breakthrough in the line connecting a series of earlier peaks. The reason for the strengthening of the pound was the increased reports that both Prime Minister May and the parliamentary majority rejected the possibility of leaving the European Union without any agreement. This was enough for the very heavily overestimated pound to rebound more strongly.
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Today’s session is significant, as another vote in the British Parliament on the Brexit agreement is to take place. What counts first and foremost will be the distribution of votes and new proposals and the media reports. It seems that the increase on the Pound may be corrected until the result of the vote is known. On the other hand, let us remember about Wednesday’s FOMC meeting. Interest rates are supposed to remain unchanged, although the tone of the statement may be significant. The US-China negotiations are also entering a decisive phase. This week could therefore bring significant results for the GBP/USD pair.
