UK will not ask for longer Brexit period

Cabinet Office minister Lidington stated yesterday that Britain will not ask for an extension of the Brexit transition period when it will publish its detailed plans about the future relationship with the EU next month. On the other hand UK PM May could face some pressure, when she meets her EU peers before the EU summit next month. Overall, EU diplomats are alarmed at the minimal progress made, after the March breakthrough according to media. Should there be further negative headlines for the issue we could see the pound weakening.

Cable dropped and broke the 1.3500 support line yesterday, however regained any losses made later on and continued trading on higher grounds. We see the case for the pair to trade in a sideways movement today between the 1.3500 support line and the 1.3600 resistance line. Should the bulls take over, we could see the pair breaking the 1.3600 resistance line and aim for the 1.3665 resistance hurdle. On the other hand should the bears be in the driver’s seat we could see the pair breaking the 1.3500 support line and aim for the 1.3425 support zone.