Brexit can be reversed! GBPUSD jumps on the news!

The Brexit cobweb is getting more tangled – according to Advocate General Manuel Campos Sanchez-Bordona of the EU Court of Justice, The U.K. should be allowed to reverse its Article 50 notice which triggered the Brexit process. Meaning that they can withdraw their leave application and stay in the EU.

In a non-binding statement, the advisor to the European Union’s top court said that “the possibility to revoke the Brexit notice continues to exist”.

How did this come about?

Back in September, A Scottish court decided to seek the EU tribunal’s guidance in a case brought by a group of Scottish and English lawmakers seeking to reverse the so-called Article 50 process.

The issue is very complicated since while Article 50 of the EU’s Lisbon Treaty tells member states how to start the process of leaving the bloc, it offers no help on what to do it they change their mind.

At the Nov. 27 hearing before the full EU court, lawyers for the lawmakers behind the case, argued that legal certainty needs to come before politics and that the U.K. Parliament, which has the power to decide, needs to have certainty about the law.

While the opinion of the Advocate General is purely advisory, the EU Court of Justice usually follows such advice. A date for a final ruling hasn’t been set yet but could still come this month, potentially even before the U.K. Parliament’s Dec. 11 vote on Prime Minister May’s Brexit deal.

Any ruling upholding Sanchez-Bordona’s view could further complicate Prime Minister Theresa May’s uphill campaign to sell her withdrawal deal to lawmakers and voters back home. A decision saying that Article 50 can be unilaterally revoked favors those who want to remain in the EU and could help those campaigning to prevent Brexit with a second referendum

Following the news on Tuesday, the GBP/USD cross jumped to a day high of $1.284

This news will surely bring volatility back on the table for the pound and a lot of opportunity for trading.

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