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New Brexit Talks Hits GBP
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GBP continues to drop as UK aims to close the deal by October 15, though EU doesn’t want to accept trade deals. Boris Johnson said that London is ready for trade relations with the European Union in accordance with WTO norms, if the parties fail to come to an agreement that would suit the British side.
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The European Union is puzzled by such a proposal – trade under the WTO rules involves the restoration of full-fledged borders, which will lead to huge transport delays at the border.
Pound against USD is below the dynamic support of June 30 and a static support of 1.31700, hence GBP probably is going to continue the downtrend until 1.3100 – 1.3000, where an important support level and Fibonacci 0.382 are in position.
The same pattern is seen on another major pair traded against GBP – Japanese Yen. At the time of writing this article, the GBPJPY quote on Overbit is 139.576 which is below an important resistance of 139.860 – 139.900 and is below the dynamic support of June 30, hence the drop may continue down to 138.536 – minor support and Fibonacci 0.382 level and to a major support of 138.156
EURGBP on the opposite is gaining, the pair is currently traded above the down-trend channel and looks like it will continue the bullish run to test resistances at 0.90585 – 0.91253. If the tensions between EU and GB continue on trade regulations and none of the sides accept the trade conditions between the two, the Pound may continue the downtrend further.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Aziz Kenjaevcontributor
Technical analyst, crypto-enthusiast, ex-VP at TradingView, medium and long-term trader, trades and analyses FX, Crypto and Commodities markets.
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