October 8, 2020 4:59:28
The EURGBP has been extremely lively over the past few months due to the ongoing Brexit saga. With the Brexit deadline fast approaching traders are questioning the possibility of a deal being finalised.
European Council President Charles Michel has said it is “time for the UK to put its cards on the table” over a post-Brexit trade deal.
The UK’s Chief negotiator has suggested there are “big gaps” between the two parties, with fishing rules being one major issue. Boris Johnson has previously said that a deal must be reached this month in order for the new rules to be implemented across the UK by the end of the year.
As the deadline approaches, a No-Deal Brexit becomes an increasingly possible outcome. That, or another extension which wouldn’t surprise anyone after the past 4 years.
A “No Deal Brexit” could sink the GBP according to Bloomberg strategists. With that in mind, the EURGBP falling wedge breakout should capture our attention. However, the breakout is yet to be confirmed.
EURGBP – Technical Analysis
The EURGBP has been trending between a rising parallel channel formation on the weekly charts.
The EURGBP 4 hourly charts are showing a potential breakout of a falling wedge formation. We are yet to see confirmation of this breakout, the impulse currently looks weak.
Traders will be looking for a move above the recent resistance level at 0.9160 to confirm a move higher. If the EURGBP returns into the falling wedge formation we may conclude the recent breakout was a fake move higher.
Lets see what the EU and US session brings.
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