The first “set of advice” for businesses in the case of hard Brexit were published yesterday! They were published by UK Brexit secretary Dominik Raab. The “set of advice” contain notes for more red tape for UK businesses and higher prices. Also, imply that many of the problems created by a no deal Brexit may be beyond the UK government’s powers to fix. Warning that leaving without a deal would have “large fiscal consequences” was also repeated by Chancellor of the Ex-Chequers Philip Hammond.
GBP/USD dropped breaking 1.2825 support line. The pair may prove sensitive to Fed’s Chairman Powell’s speech today. We could see it breaking the 1.2770 support line and aim for the 1.2725 support level. On the other side, we could see it breaking the 1.2825 resistance line and aim for the 1.2895 resistance hurdle.
EU’s chief Brexit negotiator, said that negotiations are now entering the final stage and that common ground could be found. UK and EU will negotiate on Brexit continuously from now on. But the delay may occur on the October in any case the negotiations are to be concluded well before year end. Looks like that London keep reigning as a currency world capital. UK confidence got a boost as the UK budget posted the biggest surplus for July in a number of years!
GBP/USD rallied yesterday and broke the 1.2895 resistance line. We could see the pair reaching, or even breaching the 1.2960 resistance level (If the pair continue to stir the market’s buying interest). Also, we could see it breaking the 1.2895 support line and open the way for the 1.2825 support level (If the pair come under selling interest though).
Cable remained relatively stable ahead of the Brexit negotiations. If there is a no deal about Brexit, then we can see that there can be including the recognition of some EU rules and include a comparison of the present and the future status of trade – Plans by UK government’s! If there’s any negative headlines happens about Brexit, we could see the pound weakening.
GBP/USD continued its sideways movement between the 1.2770 resistance line and the 1.2685 support line. This pair can show some sensitive to some of the Brexit headlines or a further weakening of the USD. We could see it breaking the 1.2685 support line and aim for the 1.2590 support barrier. On the other side, we could see it breaking the 1.2770 resistance line and aim for the 1.2825 resistance hurdle.