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.
UK foreign secretary said that worries remain about a hard Brexit however, more EU states realize now what a mistake that would be. On the other side, Edgars Rinkevics, stated that he estimates the possibility of reaching a deal at 50%.
It moved in a sideways manner between the 1.2660 support line and the 1.2770 resistance line.
GBP/USD seems to be threatening the downward trend-line and should it clearly break it. We could see the pair, breaking the prementioned downward trend-line, break the 1.2770 resistance line and aim for the 1.2825 resistance hurdle. On the other side, we could see the pair breaking the 1.2660 support line and aim for the 1.2590 support barrier.