The British pound rose sharply against the U.S. dollar on news the Government cannot trigger Article 50 without parliament involvement. This announcement boosted speculation the U.K.’s exit from the EU may be delayed or softened by the parliamentary process. However, the Brexit process is far from over, so the pound remains vulnerable to losses.
In terms of our daily signal strategy we were able to pocket a good profit by using our long-entry in the GBP/USD. Thus we gained a profit of 80 pips only today. And if that's not enough, we also have a swing trade BUY at 1.2275 which already proved to be highly profitable.
Apart from the major risk events for sterling traders, politics recently dominated the financial markets and it is the Trump-effect that dissuades investors from being long dollars ahead of the U.S. presidential elections. Subsequently, the euro and British pound rise towards higher levels and overcome almost every hurdle on their way up. Financial markets remember precisely what happened the day of U.K.s June referendum when many investors were caught on the wrong foot and the Brexit camp emerged triumphant. This time, investors don't ever want to be caught off guard again and that is why large investors are taking no risk while gamblers are putting their money on Trump.Trade well!