The risks of a tough Brexit increase

The British pound accelerated the decline across the market after the details of today’s meeting between British Prime Minister B. Johnson and German Chancellor A. Merkel appeared. The reason for this was the escalation of disagreements on the status of Northern Ireland. Thus, the EU continues to insist that Northern Ireland should remain in the customs union. Otherwise, a Brexit deal is unlikely.

This actually indicates that Brexit negotiations are at an impasse. The British pound returned to monthly lows against the US dollar and the euro, confirming the preservation of the downward trend. So, amid growing pessimism for Brexit, we cannot expect a further decline in the GBP/USD pair to support levels: 1.2150 and 1.2100.

Fig. GBP/USD chart

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Hanzenko Anton

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