The market is waiting for the results of the Brexit deal

From the start of the day the British pound has been moderately strengthened across the market, which is caused by a number of comments by representatives of the EU and the UK. Brexit negotiators have alternately announced the progress of negotiations towards a compromise. British Prime Minister T. May said that negotiations in Brussels are making progress despite some problems.

Thus, the financial market at any moment expects a formal Brexit deal, which pushes the British pound to growth. It should be noted that the official publication of the results for Brexit should expect a significant rise in volatility in the British pound, which may be more than 100 points.

In this case, the GBP/USD pair may return to the general uptrend with a test of resistance levels: 1.3100, 1.3150 and 1.3200-50. It is also possible and very rapid rollback to the publication of the details. Therefore, it is worth to be extremely attentive in the near future while trading in the British pound.

GBP/USD H4 chart. Current price – 1.2950

Read also: “Stock Indices: the UK Market”

Hanzenko Anton

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