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GBP On The Edge After British Minister Revealed Plan To Finalize Brexit Meeting Before End Of 2020

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  • Britain targets the Brexit deal before the end of the year.
  • The GBP to experience more pressure.
  • British lawmakers plan to exit regardless of the type of deal.

The GBP is walking on a thin wire following reports that British regulators are preparing to close a Brexit deal before the end of 2020. UK Cabinet Minister Michael Gove told the press on Sunday that lawmakers are working towards achieving the Brexit transition by the end of 2020. They plan to exit the EU regardless of whether they will receive a favorable deal or not.

“At the end of this year we are leaving the single market and Customs Union regardless of the type of agreement we reach with the EU,” stated Mr. Gove.

The minister further added that the move will provide significant opportunities that the government and the people need to prepare for.

EUR/GBP – Weak Bullish to Neutral

Time                            :7/13/2020

Pivot                            :0.8951

Technical View             :Long Above 0.8967

Target                         :0.8972, 0.8991

Technical View             :Short Below 0.8933

Target                         :0.8926, 0.8911

The EUR/GBP was off to a weak bullish and relatively sideways performance on Monday morning following the announcement. The pair’s exchange rate is expected to hit key targets at 0.8972 and 0.8991 if it trades long above 0.8967. Key targets have also been set at 0.8926 and 0.8911 if the price trades short below 0.8933.

Price outlook

Analysts expect the Brexit issue to affect the Pound Sterling’s performance significantly. However, the GBP’s reaction will depend on the type of deal that the British lawmakers will secure from the EU. Standard Chartered economists believe that the market currently has a downbeat outlook on the Brexit outcome at the end of the year.

They expect the GBP/USD to trade as low as 1.10 if the Brexit outcome is not favorable, thus paving the way for the U.S dollar to gain some ground against the GBP. However, there is also a likelihood that the final negotiations will yield a positive or favorable deal. In that case, the economists expect the exchange rate to rally to as high as 1.40 as the GBP gains strength.

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