{"id":157610,"date":"2019-10-15T10:31:47","date_gmt":"2019-10-15T14:31:47","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=157610"},"modified":"2019-10-15T09:49:10","modified_gmt":"2019-10-15T13:49:10","slug":"gbp-rises-on-brexit-deal-hopes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/gbp-rises-on-brexit-deal-hopes\/","title":{"rendered":"GBP Rises On Brexit Deal Hopes"},"content":{"rendered":"
October 15, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

GBP has been trading higher today on continued hopes that the UK will be able to agree to a Brexit deal with the EU.<\/strong>\u00a0Michael Barnier, the EU\u2019s chief negotiator, told reporters on Tuesday morning that although \u201cbig gaps\u201d remain between the two sides, a deal is \u201cstill possible this week\u201d. Speaking in Luxembourg ahead of a meeting with EU leaders later today, Barnier struck an optimistic tone saying that although time-wise it is becoming \u201cmore difficult\u201d to do a deal, it was \u201ctime to turn good intentions into text\u201d.<\/p>\n

Meetings Intensifying<\/strong><\/h2>\n

Barnier\u2019s meeting with EU leaders today is the\u00a0latest in a string of meetings recently<\/a>\u00a0which have seen discussions intensifying ahead of the EU summit which starts on Thursday.<\/strong>\u00a0\u00a0On Monday, there were 12 hours worth of talks, highlighting the effort that leaders are putting into attempting to resolve the situation.<\/p>\n

Irish PM Confident Over Deal<\/strong><\/h2>\n

Last week, Boris Johnson met with the Irish Taoiseach, Leo Varadkar.\u00a0The meeting proved positive with both Johnson and Varadkar saying that they believe a deal could now be possible.\u00a0<\/strong>Speaking this morning, Barnier said:<\/p>\n

\u201cReaching an agreement is still possible but obviously any agreement must work for everyone \u2013 for all of the UK and the whole of the EU\u201d.<\/p><\/blockquote>\n

Opposition Remains<\/strong><\/h2>\n

However, not all leaders feel as confidently. Antti Rinne, the Prime Minister of Finland who currently holds the EU\u2019s rotating presidency met with European Council president-elect Charles Michel this week.\u00a0On the back of the meeting Rinne said:<\/strong><\/p>\n

\u201cI think there is no time in a practical or legal way to find an agreement before the EU Council meeting. We need more time.\u201d<\/strong><\/p><\/blockquote>\n

Northern Ireland Still Key<\/strong><\/h2>\n

With the EU and the UK still heavily divided over how to handle the issue of how Northern Ireland should be classified following Brexit,\u00a0there are reports that the EU is considering holding a further Brexit summit later in the month.<\/strong>\u00a0As such, the EU would likely issue a statement at the coming summit saying that progress has been made but more time is needed.<\/p>

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However, if this is the case, the UK PM would need to request an extension to Article 50, as per the Ben Bill. If the EU is not ready to sign off on a deal though,\u00a0it is not yet clear if Johnson would try to push ahead with a no-deal Brexit.<\/strong><\/p>\n

Leaders Focused on Delivering A Deal<\/strong><\/h2>\n

Despite the differences still remaining,\u00a0the reality of a no-deal Brexit<\/a>\u00a0seems to have had an effect on the attitude of officials on both sides. There has been a much more determined tone to meetings noted over the last few weeks.<\/strong>\u00a0The EU is clearly in favor of delivering a deal. Although for now, they are still pushing for a Northern Ireland Backstop whereby, following Brexit, Northern Ireland continues to be treated under the single customs union with an eventual exit date. However, so far, the UK has been adamantly against this option. Unless Johnson is willing to accept this, it seems that negotiations will need to continue. For now, at least, it seems as though a no-deal Brexit is less likely as the focus remains on delivering a deal.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

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The breakout in GBPUSD over the last few sessions has seen price trading up above the bearish trend line from year to date highs and is now testing the 50% retracement from those highs. While we remain above the 1.3485 level, focus remains on a further push higher with the 1.2768 level the next area to watch ahead of the 61.8% retracement at the 1.2836l level. While the short term bullish channel hold, we are likely to continue higher.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex GBP has been trading higher today on continued hopes that the UK will be able to agree to a Brexit deal with the EU.\u00a0Michael Barnier, the EU\u2019s chief negotiator, told reporters on Tuesday morning that although \u201cbig gaps\u201d remain between the two sides, a deal is \u201cstill possible this week\u201d. Speaking in Luxembourg […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-157610","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=157610"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157610\/revisions"}],"predecessor-version":[{"id":157622,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157610\/revisions\/157622"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=157610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=157610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=157610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}