Nearly three years after the UK voted to leave the European Union (EU), the situation is no clearer than it was on day one. Prime Minister Theresa May has lost more than one Brexit Secretary, her relationship with the EU is close to rock bottom and the original withdrawal date will have expired when you read this report. Yet, there may well be an agreement in the second-quarter of 2019 although, as ever, there is still no consensus about what this may be.
GBPUSD CURRENCY PRICE CHART: WEEKLY TIME FRAME (JUNE 15, 2015 TO MARCH 28, 2019) (CHART 1)
A positive Brexit outcome from the passage of Theresa May’s Withdrawal Agreement could bid GBPUSD above the long-term downtrend formed from the highs formed in July 2014 and May 2018. If positive developments continue to be made in the second phase of Brexit negotiations, the Pound has potential to climb to the 1.45 handle where its advance may lose steam near the 61.8 percent Fibonacci retracement line.
