Brexit Preparations Are “On track”, GBPUSD Slides Further
GBPUSD headed for closing the week lower on Friday. The British Pound, which has been weighed by a strengthening U.S. dollar, retreated for every trading day this week. The pair fell deeper after Prime Minister Theresa May on Friday said that preparations for Britain’s exit from the European Union were on schedule.
Speaking during a joint media briefing in Berlin ahead of a bilateral meeting with German Chancellor Angela Merkel, the U.K. PM May stated that her government stood ready to trigger Article 50 by the end of March next year. The legal process had been expected to be delayed by a legal decision that she must gain parliamentary approval before triggering the two-year period of negotiation.
The greenback, which has strengthened since Federal Reserve Chairwoman Janet Yellen’s testimony on Thursday, was given a fresh boost by other Fed officials today. While New York Fed President William Dudley stated that the post-election market reaction is not concerning in terms of planned interest rate rises, St. Louis Federal Reserve President Bullard said he is leaning toward supporting an interest rate increase in December.
Sell Stop at 1.23200, Take profit at 1.22800, Stop loss at 1.23400