Welcome to the day of the long-awaited Brexit vote which is happening in the House of Commons. The voting will begin at 20:00 CET.
It is essential to know that a defeat of PM Theresa May's Brexit deal is widely expected, so markets will probably not react to the defeat itself that much but to the size of the defeat.
A narrow defeat will mean that May might be able to get it through at a later stage, but a big defeat will mean that we are in uncharted territory and thus it cannot be rule out that Theresa May will resign.
My review of GBP pairs is not giving me much clarity on what will happen but the vote starts in 10 hours time... that means there is 2 more 4H candles to close and that means the direct can change.
What is certain is that volatility should be expected and a trend can begin.
Volatility will be biggest on GBP and EUR forex pairs and of-course on the FTSE (UK100) should you have any existing positions on these pairs I would strongly advise you to either 1. keep the volume/size of the positions lower than normal or 2. get out of them all together.
No matter who you are trading with today, you should expect higher margin requirements, higher spreads and slippage. That means it is a dangerous time to trade.
I don't like to talk to much in my posts so I dotted down the most important stuff.
I will not be going in be heading into charting in this post, this is something I will be going over later in the day as I dont want to enter any GBP trades to early... and as I noted above, there is still a lot of time left to the actual vote and I expect the market makers to do their normal positioning stuff which will give me more clarity on what to actually trade today.
I will look for opportunities, which I will try to share via my YouTube channel, but if I don't have the time to create a video I will notify my trading community on what I expect to happen and what I will be trading!
Thats all I've got for you this morning.
I am still a digital nomad... moving around from city to city and caffe to caffe... so being active 17 hrs a day is a little hard but I am settling into an apartment and waiting on internet to be added so once that is done I will be very, very active!
Good luck today!