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GBP/USD smashed on BBC no Brexit deal headlines

  • GBP/USD taken down from 1.35 handle on no Brexit deal.
  • GBP/USD volatile over the Brexit statement. 

GBP/USD has been hit hard on a BBC report that states not to expect a deal today from Brexit talks. Currently, GBP/USD is trading at 1.3474, up 0.03% on the day, having posted a daily high at 1.3541 and low at 1.3413.

We also got the joint statement from May and Juncker having met today in Brussels who were lunching together, and more volatility was expected. Reuters confirmed as well as the statement was coming through. 

First notes on statement:

Juncker was saying that PM is a tough negotiator but he has to say they are narrowing their positions although he is still confident before 15th Dec.

"This is not a failure, very confident will reach an agreement this week."

PM May said, both sides are working hard in good faith and progress has been made and a common understanding on many issues. On a couple of issues, some differences remain and they will reconvene before the end of the week. She is also confident that they will conclude this positively. 

GBP/USD levels

Analysts at Commerzbank explained that GBP/USD recently eroded major resistance at 1.3445. "The move above the downtrend has introduced scope to the 1.3658 September high. It stays immediately bid above the 1.3338 mid October high. We note the 13 count on the 240 minute chart and will wait to buy the dip. Only below 1.3338 would alleviate immediate upside pressure and allow for weakness back to the 1.3130 2016-2017 uptrend."

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