GBP / USD: Brexit will be extended until May 22?

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In the evening, the leaders of the countries of the European Union agreed to postpone the release of the UK from the EU for several weeks.

"Brussels is ready to provide London with a delay until May 22, if the divorce agreement is approved by the British Parliament next week. Otherwise, the postponement will last only until April 12, " based on the final communique of the EU summit.

"Up until this date, April 12, all options for the UK will remain open. The government of the country can still make a choice between the deal, its absence, the long postponement of the Brexit date or the withdrawal of the application for withdrawal from the alliance, " said European Council President Donald Tusk.

The British currency has responded to this news growth, departing from session lows.

Interestingly, the GBP / USD pair once again pushed away from an important support level, the breakdown of which opens the way to decline for several figures at once.

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Many experts are now asking themselves: if British politicians have not been able to agree so many times, what will change in the allotted few weeks?

"The situation in the form in which it is now, still suggests that the" hard "Brexit may occur," - said currency strategies Rabobank.

According to a consensus forecast of economists recently surveyed by Bloomberg, the UK's withdrawal from the EU without an agreement could lead to a drop in the pound sterling rate by 8% from current levels. The implementation of such scenario implies a reduction is in GBP / USD to 1.20.

The material has been provided by InstaForex Company - www.instaforex.com

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