The Swedish Krona continues to bleed against the Pound amid the Brexit saga. Sterling remains well supported on global foreign exchange markets. This is due to diminished risk of the UK leaving the European Union without a deal. The threat of a no-deal Brexit will reappear if the UK lawmakers fail to pass the withdrawal agreement.
On Tuesday the GBP/SEK exchange rate closed the day at 12.4852 inching slightly higher. It’s still lacking conviction to make a decisive break out of the current trading range. Before the London opening session the GBP/SEK exchange rate was seen quoted higher around 12.4890.
The UK Prime Minister Boris Johnson’s divorce bill is bound to the forthcoming UK election. UK PM Johnson proposed the general election to be held before Christmas on December 12. The opposition parties are backing Johnson’s motion for a snap poll in December.
The UK Prime Minister is looking to win more Conservative seats to make the path for a smoother Brexit process. The UK was originally set to leave the 28-nation bloc on 29 March 2019 but since then the deadline has been delayed fourth times.
From the other side of the monetary policy spectrum, the interest rate policy will most likely be put on hold until mid-2022. Technically speaking Sweden central bank will still be easing, which should keep the Krona under pressure.
GBP/SEK Technical Pattern
If it follows his seasonal pattern, the Swedish Krona should remain under pressure throughout 2019. From a technical perspective, GBP/SEK exchange rate has been in overbought condition since the middle of August 2019. But this hasn’t stopped Krona to depreciate around 7.33%.
On the upside, the current 2019 high established at the 12.6149 level is the key level that the bulls are eyeing if they want to resuscitate the GBP/SEK bullish trend.