GBP/AUD has remained consistent since last Thursday. The pair is driven by the latest Brexit events. The UK parliament didn’t support Prime Minister Boris Johnson’s withdrawal deal in a Saturday voting, thus leaving room for a further delay beyond the current deadline set for October 31.
Currently, one British pound buys 1.8812 Australian dollars as of 05.11 AM UTC. The price has declined by 0.18% during the Asian trading session.
GBP/AUD is now trading very close to the bottom line of the sideways channel. If the price manages to break this line below, we might see it targeting the 1.866 territory, but it all depends on the fundamentals.
“Brexit Uncertainty” Becomes Tautology
Last week, after achieving the challenging milestone of reaching an agreement with the European Union (EU), Boris Johnson returned home with the hope that the Parliament would put an end to the Brexit story. But the last obstacle was the toughest one again, as the MPs didn’t back the deal. Instead, the parliament withheld its vote until formal ratification legislation is passed.
The British pound didn’t crash because there is a consensus that a no-deal Brexit will be avoided anyway. However, the current week is imperative for turning the UK boat in one direction or another.
The UK parliament will become the ground for some fierce battles in the coming days. We may see potential amendments calling for the UK remaining in the EU customs union or even another referendum. Any of these amendments would frustrate the Prime Minister, but at least they would also prevent a no-deal Brexit.