GBPUSD moves lower on comments
- Need solution on Ireland border by autumn
- looking at framework of new relationship
- not going to be intimidated by blame game
- need more realism about what is possible
- don't accept a à la carte approach to single market
- UK paper raises more questions and provides answers
- to raise questions with David Davis on Monday
- backstop means backstop
- UK approach to future trade is fairly paradoxical
- PM May and her team agreed to backstop in March
- No back tracking on Ireland backstop
- June summit important for confidence in orderly exit
- Hopeful of progress on separation agreement
- British ministers seem nostalgic for EU membership, want all benefits without being bound by rules
- to have no hard border we need custom deal as well as agreement on regulatory alignment
- EU does not see constitutional threat to UK, backstop means more regional devolution
The GBPUSD is moving lower on the comments from Barnier.
Technically, the price has moved below 100 hour MA at 1.33916, trend line at 1.3382, 100 bar MA on the 4-hour chart at 1.33749 and 38.2% at 1.33694. All bearish (see chart below)
The pair is approaching the 200 hour MA at 1.3344 level as the next key target now. The 50% of the move up from the May 29 low on the hourly chart comes in at 1.33378.
YEsterday, the GBPUSD moved up to the broken 38.2% at 1.34777. That area was also home to swing levels from January and May (see red circles on the chart below). The high stalled 1t 1.34719 yesterday and backed off. That was a key ceiling that needed to broken and stay broken. It could not.
Meanwhile the FTSE losses have been reversed and trade up 0.1%.
