Negotiations on Brexit have moved from the dead point

As a result of tense negotiations between the EU and the UK on Brexit, it was possible to agree on a financial settlement. As a result, the British pound received considerable support, and the negotiations themselves moved from the dead end. It is reliably unknown about the size of “compensation” for various sources from 45 -55, 60 and 100 billion pounds. This issue should still be approved, but next Monday the market expects a definitive answer and the transition to the main issue of trade relations between the EU and the UK.

It is likely that the financial compensation will change, and the payment will be extended for a long period. Also, the question of the border with Northern Ireland remains open, which is very difficult to solve.

As a result, the prospects for the pound are highly ambiguous and promise to be very volatile. At the moment, the pair GBP/USD is trading near the level of 1.3400, the upper boundary of the downward channel from the middle of 2014 and is limited to the minimum of 2009 (1.3500). This is a significant level and will indicate a change in the global trend.

 GBP/USD D1, current price – 1.3400

Hanzenko Anton