The British pound has renewed the March maximum. The UK and the EU are moving towards agreement

During Monday’s trading, the British pound updated the maximum value of March against the US dollar, reaching the level of 1.4228. In general, this growth in the GBP / USD pair is due to the weak position of the US dollar on fears of a trade war between the States and China. Also, support for the British currency is provided with positive news about Brexit. The UK and the EU have already been able to agree on a transition period that will begin on March 29, 2019 and end on December 31, 2020. Also, the UK will be able to negotiate new trade agreements, while maintaining existing agreements with the EU. In turn, two more key issues remain unresolved, the issue of a “tight border” with Ireland and compliance with industrial quotas by the UK during the transition period.

Technical analysis: The GBP / USD pair maintains an uptrend in the short term. In case of further growth and fixing of the instrument price above the level of 1.4250, we should expect its further growth to the levels of 1.4300, 1.4340. The nearest levels of support at the moment are at the marks of 1.4130, 14080.

Fig.  GBP / USD Graph. The current price is $ 1.4225.

Alexander Sivtsov