GBP/USD Ahead of Art. 50 Triggering

GBP/USD has been in consolidation ahead of activating the never-before-used article 50 that triggers a two year process of a country's decision to leave the European union. The UK prime minister, Theresa May, is expected to start the divorce this month.

The resolutions that will come out of the talks will, to a large extent, determine the future of the United Kingdom. All of this is being reflected in the GBP/USD pair as price has been trading around 1.2150-1.22 for the last few days.

There isn't a certain date when Article 50 will be triggered, so market participants are waiting in anticipation. The low volumes are expected to continue until we have something on the table.

Main support is seen at 1.20 while main resistance is way up at 1.27.

Chart: GBP/USD H4