Search ForexCrunch

70 members of the British parliament have signed an amendment to a motion in the Queens speech regarding a referendum on the UK’s European Union membership.

GBP/USD is now trading below 1.53, extending the losses it suffered on the recent dollar rally. 1.52 serves as support.

The move is an embarrassment to UK PM David Cameron, that is visiting the US. These MPs want a vote to be held on Wednesday. Cameron has stated that a referendum will be held in 2017, depending on negotiations. Many British citizens are unhappy with the UK paying too much to the EU, while not receiving enough in return.

However, the economic ties with the continent are critical for the UK economy, and any talk against the EU membership weighs on the pound.

It is unlikely that the UK will leave the EU. The noise could be part of the negotiations.

For more, see the British Pound forecast, and see a live hourly chart of cable here:[do action=”tradingviews” pair=”GBPUSD” interval=”60″/]