Pound retreats on Brexit impasse

Pound retreats on Brexit impasse - MarketPulseMarketPulse


Home/Brexit/FX/News events/Newsfeed/Technical analysis

Share 0

The British pound has lost more ground in the Tuesday session. GBP/USD is currently trading at 1.3356, down 0.79% on the day.

Brexit takes sterling on a roller-coaster

It’s been a roller-coaster ride for the pound. GBP/USD gained 2.26% last week, as the pair rose on growing optimism that a Brexit deal was close at hand. However, the pound reversed directions on Friday, when it became clear that a deal still remained elusive. The sides are still talking, but the markets are no longer secure in their optimism that a deal will be reached by December 31st, when the UK says goodbye to the European Union for good. The pound is already down 1.20% this week, and if the current trend continues, we could see all of last week’s gains erased.

The European Parliament had set this past Sunday as a drop-dead deadline for the Brexit talks, saying otherwise it would not be able to ratify an agreement by December 31st. Like umpteen deadlines before it, this one came and went, and with it went some of the market optimism that a deal was imminent. The sides have said that almost all of the issues are resolved, but gaps over fishing rights, enforcement of the agreement and a level playing field remain and threaten to derail the talks and trigger a no-deal Brexit. It must indeed be infuriating for European negotiators when Prime Minister Johnson says that adopting World Trade Organisation rules in the event of a no-deal would be “more than satisfying”.

On the economic front, UK GDP for Q3 came in at 16.0%, revised upwards from 15.5%. This is certainly good news, as the economy has recouped most of the 19.2% decline in Q2. At the same, the economy remains below pre-pandemic levels, as the economy is 8.6% compared to GDP a year ago.


GBP/USD Technical



GBP/USD faces resistance at 1.3576, followed by resistance at 1.3692 There is weak support at 1.3311. Below, there are support lines at 1.3268 and 1.3142 The pair broke below the 20-day MA in the North American session. This is a sign of downturn for the pair

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

Kenny Fisher

Latest posts by Kenny Fisher (see all)

Original author: Kenny Fisher


© MarketPulse

Markets eye BoJ minutes, inflation
WiMi Wins Annual Award for Leading Sci-tech Innova...

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/


Broker Search

Latest Spot Rate

27 January 2021
US data, Italian politics - MarketPulseMarketPulse Home/Central banks/COVID-19/News events/Newsfeed/Treasuries Share 0 Markets expect dovish signal from Fed The Fed’s first policy meeting of the year should be a dovish affirmation that signals they a...
27 January 2021
Earnings galore! - MarketPulseMarketPulse Home/COVID-19/Earnings season/News events/Newsfeed Share 0 Tech earning  in spotlight Today is the calm before a tech earnings storm and an FOMC policy decision that attempts to avoid any communication mistak...
27 January 2021
Japanese yen - MarketPulseMarketPulse Home/Central banks/COVID-19/FX/News events/Newsfeed Share 0 The Japanese yen continues to range-trade early in the week. Currently, USD/JPY is trading at 103.67, down 0.06% on the day. BoJ minutes note concern ov...
27 January 2021
HONG KONG, Jan. 27, 2021 /PRNewswire/ -- At a pivotal point in China-US relations, in the midst of COVID-19, and days following the inauguration of President Joe Biden, the United States and China are facing profound changes in their relationship and...
26 January 2021
Australian inflation, FOMC eyed - MarketPulseMarketPulse Home/Central banks/FX/News events/Newsfeed/Technical analysis Share 0 The Australian dollar has posted modest gains in the Tuesday session. Currently, AUD/USD is trading at 0.7729, up 0.21% on ...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.