Traders long Sterling to bet on a Brexit delay

While the PM is still negotiating with the EU, Parliament is debating whether to wrest the possibility of a ‘no deal’ away from the prime minister. Moreover, the opposition Labour party is now supporting another referendum. These developments caused the market to evaluate the new Brexit path.

And they are liking this idea of a Brexit delay. Pound Sterling rose against most currencies. Versus the US Dollar, the pair has climbed above the long-term trend indicator Р150-day moving average Рagain.  Prices are re-testing the prior pivot high at 1.320. If the PM initiates a formal process to delay Brexit, a break of this resistance is possible (see Featured Chart).

In fact, some traders are already pricing in this delay. Against the Euro, GBPEUR is now flirting with another upside breakout. Given the size of the rate’s sideways pattern, this will be a significant technical development. Some tentative longs may be opened to bet on this possibility.

Other pair worth taking a look are GBPCAD, which is about to lift off from the major congestion zone, and GBPCHF, which is clearing the overhead resistance at 1.315.

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