How to Trade GBP as Brexit Transition Period Expires In December
Again Brexit topic is on the table? Yet not resolved? And the answer is NO. I think Brexit is the unsettled despite broad debates took place with the respective representatives and the Country’s head too. The latest deadline is coming nearer and that is December End. This is the reason possibilities are there for medium to high volatility in the GBP Parity. Along with the main Brexit discussion, another key issue is how to manage the Irish border after successful Brexit? Here the chances are there as U.K. PM Boris Johnson could drop clauses in the legislation regarding management of the Ireland – Northern Ireland borders.
There are two bills: the Internal Market Bill and the Taxation (Post-Transition Period) Bill. According to the government, certain clauses in both bills are necessary to create a safety net that protects Northern Ireland if talks on how to manage the Ireland-Northern Ireland border fail.
The Internal Market Bill is in its final stages of approval. It aims to ensure the United Kingdom’s four nations can trade freely with one another after leaving the EU. The parliament voted in favor of the Internal Market Bill clauses on Monday while the Taxation Bill begins its journey through parliament on Tuesday, and will be debated in full on Wednesday.
Let me share something positive from the U.K. itself
Britain became the first Western country to start mass – vaccinations to prevent Corona virus infections. U.K. regulators granted emergency authorization for the vaccine on Dec. 2. With National Health Service hospitals on Tuesday starting to administer 800,000 shots of the vaccine developed by U.S. drug maker Pfizer and its German partner BioNTech. U.K. has placed orders for 40 million in total — enough for 20 million people, as two shots are required at least 21 days apart.
Both Pfizer’s and Moderna’s vaccines have been shown to have 95% efficacy at protecting people against corona virus.
GBP/USD: The pound recovers previous losses and spikes up sharply in the early U.S. session. Today pair made intraday high at $1.3393 and low at $1.3289 mark. A sustained close above $1.3375 will drag the parity up towards $1.3440, $1.3478, $1.3498 and $1.3525 mark respectively. Key support levels are seen at $1.3289, $1.3263, $1.3222 and $1.3170 marks respectively.
Take a look and do trade wisely!