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GBP Weekly Forecast – Key Week for Brexit Negotiations
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
Technical snapshot
- 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