GBP/USD Falls As Brexit Lands In May’s Hands

Brexit is almost here. The British government led by Prime Minister Theresa May now has the authority to trigger Article 50 of the Lisbon Treaty, notifying the European Union that Britain is leaving.

The Brexit Bill was returned to the House of Commons with amendments from the House of Lords. These were related to sensitive issues: the rights of EU citizens living in the UK and the involvement of parliament in the EU exit details.

However, the debate in the House of Commons did not last too long. Despite growing opposition and a narrower margin, the lower house rejected the amendments quite swiftly. It was then returned to the upper house and now the government can officially trigger Brexit.

May and her colleagues will probably act in the last week of March. Some have circled Monday, March 27th as the Brexit date.

GBP/USD was somewhat indifferent to the debates in the British parliament, which were mostly held during the US session. However, the pound begins falling in the European session.

Pound/dollar currently trades at 1.2139, after already reaching a low of 1.2124, which is low support.

If the 1.2120 level is lost, the next cushion awaits only at the 1.20 level. Resistance is at 1.2250.