Brexit – Sterling Price, Charts and Analysis – Webinar
- EU Council meeting on Thursday/Friday is now key.
- Queen’s speech confirms ‘free trade and friendly cooperation’ with EU
Sterling (GBP) in a Holding Pattern Ahead of EU Council Meeting
UK asset markets are marginally lower as the week opens after some of last week’s heavy gains were pared back. The Brexit optimism of last week has dissipated after weekend commentary from the EU that much work is still needed from the UK to get a deal. Today’s Queen speech is likely to be voted down by Parliament – the ruling Conservative Party no longer have a majority – while upcoming UK data over the week will remain in the shadows of Brexit talks.
The EU Council meeting on Thursday and Friday will be the last time that a Brexit deal can be agreed on before the October 31 deadline and a Brexit extension is highly likely, deal or no-deal.
If a Brexit deal is reached, Sterling will rally further, while in the equity space, the domestically-focused FTSE 250 should outperform the export-focused FTSE 100. GBPUSD looks to initial support at 1.2502 from the 38.2% Fib retracement, while resistance is off the 200-dma and the 50% fib retracement around 1.2670.
GBP/USD Daily Price Chart (March – October 14, 2019)
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