Bank of England is preparing for Brexit
According to the results of the speech of the Bank of England Goevrnor M. Carney, the British pound strengthened restraintly. The reason for the growth of the British was the statement that the Central Bank of the United Kingdom is ready to adhere to the scenario for Brexit, actually approved the existing text of the agreement on Brexit. At the same time, the Central Bank of Great Britain does not discard possible risks and is ready to work ahead of the curve.
Earlier, Spain announced its disagreement with the Brexit deal, if the text of the agreement is not changed. It increased the pressure on the single currency, which coincided with the negative opening of European stock indices. At the same time, this statement may stimulate Britain to a more loyal attitude toward the Brexit deal.
As a result, the British pound is showing moderate growth against its main competitors. The EUR/GBP pair slowed down and is trading near a significant resistance of 0.8900, from which it is possible to beat off the promotion of the Brexit deal and a technical reversal with a return to the downtrend.
EUR/GBP chart. Current price – 0.8880
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Hanzenko Anton
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