The Great British Pound has rallied significantly after UK Prime Minister Boris Johnson agreed a Brexit deal with the EU.
The next hurdle for the British government will be passing the deal through parliament, with the Democratic Unionist Party (DUP) expected to put up a fight over the Irish border.
There has now been a 5.5% rise in the price of the Pound over the past eight days, with optimism returning to the currency market following a spell of uncertainty.
While the rally retraced slightly from $1.30, if the price remains above $1.282 it could provide a key platform for a further rally to the upside in the coming days.
The Pound is now trading well above the 200 exponential moving average (EMA) for the first time since May 6.
However, if a deal doesn’t get the green light in Westminster, the Pound will likely retest the 200 EMA at around $1.26
Johnson’s ability to secure a deal with the EU – something that Theresa May failed at on numerous occasions – has received praise from several political commentators today.
But that admiration wasn’t echoed by the leader of the opposition, Jeremy Corbyn, who said: “From what we know, Johnson’s negotiated a worse deal than Theresa May. This sell-out deal risks our rights, protections and NHS. It won’t bring the country together and should be rejected.”
Johnson rebuffed Corbyn’s claims on Twitter: “We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment.”
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