Brexit Talk Results 120+ PIP movement in GBP/USD

Brexit Talk Back On Table

The pound depreciates noticeably on Monday as U.K. gave hint to undermine the exit agreement unless free trade terms are agreed by October. As everyone knows that U.K. has set a deadline of October 15 to strike a Brexit Deal. PM Boris added that, “If we can’t agree by then, then I do not see that there will be a free trade agreement between us, and we should both accept that and move on”.

  • In addition, U.K. PM Boris Johnson claims that leaving all existing trade agreements without a fresh deal at the end of the year would be a “Good Outcome” for Britain.
  • U.K. is going to publish Internal Market Bill on Wednesday, which contains minor clarifications on the Northern Ireland Protocol.
  • The 8th round of formal talks over a trade agreement will begin on Tuesday with the two sides aiming to overcome major differences on fishing rights and state aid before the agreed October deadline.
  • In the absence of an agreement, the UK has to pay costly tariffs while trading with EU and border checks when the transition period ends on December 31.

Technical View:

The sterling falls and slips below $1.3200 mark on Monday. The pair made intraday high at $1.3266 and low at $1.3140 mark. A sustained close above $1.3140 will drag the parity up towards $1.3238, $1.3286, $1.3350, $1.3382, $1.3422, $1.3442 and $1.3515 mark respectively. Key support levels are seen at $1.3140, $1.3102, $1.3062, $1.3009, $1.2950, $1.2838 and $1.2775 mark respectively.
Take a look and do trade wisely!

Good Luck