Theresa May takes control of Brexit negotiations

Theresa May announced yesterday that she will lead the Brexit negotiations with Secretary for Exiting EU deputising on her behalf. The announcement, practically relegates the Brexit department and was perceived by analysts as a move towards a softer Brexit. Analysts also see the case for Theresa May’s EU advisor Robbins to gain more influence over the Brexit negotiations and play a key role. The pound strengthened upon the news and should there be more headlines indicating further consolidation of the UK political scene we could see the sterling getting further support.

Cable rose yesterday, testing the 1.3160 resistance line, however without any success in breaking it. We could see the pair continue its sideways movement maybe with some bearish tendencies as the 1.3160 resistance level proved to be strong. Should the pair come under selling interest we could see cable aiming if not breaking the 1.3050 support line. On the other hand, should the market favor the long positions, we could see the pair breaking the 1.3160 resistance line and aim for the 1.3270 resistance zone.