GBP Weekly Forecast – Key Week for Brexit Negotiations

9/28/2020 02:54:00 PM

Key round of Brexit talks

PM Boris Johnson has threatened to break off talks if no deal is reached by October 15
EU’s chief Brexit negotiator, Michel Barnier, and his British counterpart, David Frost, will meet in Brussels on Tuesday
Sticking points include which state aid rules the U.K. will follow and the EU bloc’s access to the U.K.’s fishing waters
Enough progress will lead to intensive “tunnel” talks that could produce a decent deal in time for the EU Summit on October 15
Negotiators and outside observers have expressed cautious optimism on this week’s negotiations results

The pound has lost value against ALL of its major counterparts in the last month
It lost the most value against the yen, dollar, and the Loonie
Stochastic is flagging GBP’s “overbought” conditions against AUD
GBP/USD and GBP/JPY are both in “oversold” territory
EMAs reflect the short-term bullish pressure across the board
GBP/JPY and GBP/CAD are still mainly bearish on the daily time frame