FX168 Financial News (Hong Kong) - Earlier on Wednesday (November 14), looking forward to the positive results of the cabinet meeting, pound /The dollar climbed to a high of 1.3035. However, as the office of British Prime Minister Theresa May confirmed the report on the cancellation of tonight's press conference, the currency pair faced great selling pressure and fell below the 1.30 threshold.
British Prime Minister Theresa May's office recently said that the Prime Minister will not hold a press conference after the Cabinet meeting, but will have a brief statement; The Prime Minister will make a statement to Parliament tomorrow. Now the market is waiting for the Prime Minister to make a brief statement at the end of the meeting.
The 27 countries of the European Union said that they had ended the discussion on the withdrawal of Britain from the EU and had not received any hint from London that there would be further conflict in the cabinet.
In addition, Laura Kuenssberg, political editor of the BBC, quoted a senior member of the Conservative Party as saying that supporters of the Brexit party of British Prime Minister Teresame "may" demand a vote of no confidence on Thursday to challenge her leadership in the party.
Kuenssberg said that the Brexitists were very angry about the draft Brexit Agreement of Teresame, and they were submitting a letter to the committee composed of conservative lawmakers responsible for convening a vote of no confidence to challenge the leadership of the party.
According to BuzzFeed, 8-10 officials did not support the Brexit agreement of British Prime Minister Theresa May. Some officials said that Prime Minister Theresa May should go back and make some changes.
In addition, according to foreign media reports, the British Conservative Party think tank Bow Group and the Brexit members' promotion alliance called on Prime Minister Teresa May to resign immediately.
Pressed by the news that Teresa May "may" face a vote of no confidence to challenge her party leadership, the pound/dollar once fell below 1.29, more than 150 points lower than the daily high, to 1.2879 at the lowest.
(Trend chart of GBP/USD, source: Zerohedge, FX168 financial network)
According to Sky News, reliable sources said that the text of the Brexit agreement includes: 1. The guarantee agreement cannot be withdrawn unilaterally; 2. There are numerous annexes on a level playing field.
Subsequently, according to sources quoted by foreign media, the Irish ambassador said Dublin was satisfied with the draft Brexit Agreement.
Just now, according to British Telegraph reporter, British Prime Minister Theresa May has won cabinet support on her Brexit agreement, at least so far.
These two news stimulated the short-term rise of GBP/USD by more than 160 points to 1.3046, and then dropped sharply from the high by 100 points to 1.2945.
(Five minute trend chart of GBP/USD, source: FX168 Financial Network)
Speaking of the progress of the UK's withdrawal from Europe, Joseph Trevisani, a senior analyst at FXStreet, said: "The pound is extremely sensitive to the news of the UK's withdrawal from Europe. The final direction of the currency pair depends not only on whether it has been approved by the cabinet, but also on its scarce liquidity. Now it is very dangerous to trade in the pound."
Technically, in the upward direction, the initial resistance of the currency pair may be at the psychological level of 1.3000, and the further resistance may be at the daily high/50 daily average of 1.3040. If it breaks through, it will reach the high of 1.3150 on November 8.
On the other hand, the preliminary support is at the daily low of 1.2880, and the further support is at the low of 1.2825 on November 12. If it falls below the low of 1.2775 on October 26.
