The joy of the bulls on GBP/USD from the verdict of the Supreme Court of Great Britain, which recognized the actions of the country's Prime Minister Boris Johnson to suspend the national Parliament as unlawful, was short-lived, since there was no further clarity in the Brexit process. Moreover, the hopes that the head of government, oppressed by a series of defeats, would step down, did not materialize.
The House of Commons resumed its work, and a number of deputies urged B. Johnson to resign, to which he replied that he wanted to hold Brexit and accused the MPs of a sabotage.
"Apparently, the Parliament does not want the British exit from the EU to take place at all. Parliament should either step aside and allow Brexit to take place or a vote of no confidence in the government be passed and ultimately face the voters," he said.
At the same time, the prime minister noted that he was ready for such a turn of events, but recalled that the last step with respect to the cabinet would mean early elections, and suggested that the head of the Labor Party, Jeremy Corbyn, is trying to evade them.
"Does Corbyn still want to be prime minister?" Why won't Labour allow him to cast his spell on the electorate? Is it because they are not only afraid that he will lose, but are even more afraid of the illusive possibility that he can win?" B. Johnson said.
It is worth noting that if the leader of the Scottish National Party, Nicola Sturgeon, stated that the opposition should pass a vote of no confidence in the prime minister, if he does not resign, then Jeremy Corbyn takes a more restrained position. He reiterated his willingness to support early elections only after agreeing on a new Brexit postponement.
Thus, B. Johnson is still at the helm of the cabinet, the risks of early elections have not disappeared, there is still no "divorce" agreement, as well as the confidence that the Brexit deadline will be postponed from October 31 to October January 31st. The British prime minister refuses to ask Brussels about this, and claims that if necessary, he will withdraw the country from the EU on October 31 without a deal.
As for the pound, if the bulls in GBP/USD manage to cling to support at 1.2295-1.231, then the British currency will be able to attract new buyers.
If the bears succeed in pushing the level of 1.2315, then this will increase the risk of a further decline to 1.2270 and further to 1.2200.
The material has been provided by InstaForex Company - www.instaforex.com