22.10.201908:45 Forex Analysis & Reviews: GBPUSD: Brexit vote postponed to today. The DUP and Labor are ready for decisive government action

The British pound continues to stagnate in one place, trading almost unchanged against the US dollar and the euro. Yesterday's decision by House Speaker John Bercow was predictable. Let me remind you that the speaker rejected the government's request to hold a vote on the Brexit agreement on Monday. According to Bercow, the conduct of the vote is monotonous and meaningless, as, in the end, the circumstances under which the vote was blocked on Saturday have not changed.

Let me remind you that parliament wants confirmation that no matter what the vote, the UK will not leave the EU without an agreement on October 31, but will receive another three-month postponement from the EU, to which, incidentally, representatives of the European Union agreed yesterday.

Speaker Bercow's decision means that a vote on the Brexit agreement is likely to take place today. On Saturday, lawmakers made adjustments to the government's earlier request for a vote, for Prime Minister Boris Johnson to ask the EU for a three-month delay, which he did. However, in a separate message, Johnson indicated that he was against extending Britain's exit and would make sure the country left the EU on October 31.

The lawmakers' actions have a dual purpose: to avoid pushing the bill through parliament without properly examining it, and to prevent the UK government from accidentally or intentionally withdrawing the country from the EU without reaching an agreement. However, if the government can speed up its Brexit bill on time through parliament, the UK could theoretically leave the EU by October 31st. Before today's parliamentary vote, the prime minister had already asked parliamentarians to support him with two decisive votes, which would allow him to negotiate an agreement through the House of Commons by the end of next Thursday.

The British pound still leaves all this news without attention, as the market is already seriously "charged" with volumes, both in this and in the other direction. The further direction of the pair will depend on today's results of the confrontation. If the agreement is approved, which is unlikely, the pound will break above the resistance of 1.3030, which will lead to further growth of the trading instrument in the area of highs 1.3170 and 1.3260. If Labor, along with DUP and Tory opposed to Brexit, are able to resist the government, then the pressure on the pound will increase, and the decline in GBPUSD under the support of 1.2940 will increase the pressure on the pair, which will lead to the demolition of a number of stop orders and a fall to larger lows of 1.2840 and 1.2670.

EURUSD and AUDUSD

The euro continues to trade in a narrow side channel, also waiting for the outcome of Brexit. The lack of important fundamental statistics so far deters buyers of risky assets, however, news on trade negotiations between the US and China support the euro at current highs. The further upward movement will occur only after a successful Brexit, otherwise, the return of the EURUSD pair under the support level of 1.1130 will increase the pressure on buyers, forcing them to close their long positions, collapsing the euro to the lows of 1.1090 and 1.1050.

The Australian dollar rose slightly against the US dollar but remains near its weekly highs. The pair was supported by today's data on the consumer confidence indicator, which rose last week in Australia. According to a report by ANZ and Roy Morgan, confidence rose by 0.6% after falling 1.2% the previous week. The index was supported by the unemployment rate, which fell in Australia this September.

As for the technical picture of the AUDUSD pair, only a breakthrough of the resistance of 0.6890 and another wave of weakness of the US dollar against the backdrop of successful negotiations between the US and China will allow renewed upward momentum in the trading instrument, which will lead to a test of the highs of 0.6940 and 0.7020.