16.11.2018 03:14 PM
A repeat Brexit referendum could send a pound to $ 1.10

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Today, many investors admit that working with the pound has become similar to playing in a casino, all or nothing. According to them, the situation around Brexit is far from complete and to a large extent, depends on the will of the British Parliament."In the event of a second referendum on the UK's withdrawal from the EU, the pound sterling could collapse to $ 1.10, a level that has not been observed since 1985," said Bernd Berg, an analyst at investment company Woodman Asset Management."Even if a second vote again leads to Brexit, it is still unknown if the negotiations will resume after that or will we again return to the agreement that we have now? For the British currency, this will be a period of uncertainty and strong volatility," he added."A vote of no confidence in Theresa May or new elections that will force her to retire can send a pair of GBP / USD to 1.20. However, if the head of the cabinet keeps his post and manages to carry out a "divorce" agreement through the parliament, the pound has every chance of strengthening against the dollar next year," the expert believes."Fundamental indicators speak in favor of the growth of the British currency. If the agreement is approved by the parliament, the pound may rise in price to $ 1.40 or even more by the end of 2019," said B. Berg.

Viktor Isakov,
Analytical expert of InstaForex
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