10 April 2019 : Pound traders have narrowed the trading range for GBPUSD to between 1.30 and 1.31, even as markets remain on tenterhooks awaiting the next developments surrounding Brexit. The EU is set to hold an emergency Brexit summit on Wednesday, amid expectations that the UK will be told to delay its exit by up to a year.

It remains to be seen whether such a demand is palatable for UK lawmakers and Prime Minister Theresa May, whose request for a short extension to the June 30 was rejected. While a longer extension may avoid stringing markets along with a series of cliff-edge dates, it still doesn’t remove the overall uncertainty as to how and when the UK will exit from the European Union. This implies that the dark clouds of Brexit won’t be clearing up anytime soon, which should continue weighing on the Pound throughout the rest of 2019.

Focusing on the technical picture, the GBPUSD is struggling to keep above 1.3000 on the weekly timeframe. A decisive breakdown and weekly close below this point are likely to open the gates towards 1.2800 in the short to medium term.

Source: Lukman Otunuga, FXTM Research

Reporting for EasyKobo on Wednesday , 10 April 2019 in Lagos, Nigeria