UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to “go the extra mile” and extend the Brexit trade negotiations beyond Sunday’s deadline. “Despite the exhaustion after almost a year of negotiations, despite the fact that deadlines have been missed over and over, we think it is responsible at this point to go the extra mile,” they said in a joint statement. “We have accordingly mandated our negotiators to continue the talks and to see whether an agreement can even at this late stage be reached,” they added. UK delegation are expected to stay in Brussels until at least Tuesday.
GBP/CHF opens notably higher today but it’s kept well below 55 day EMA, staying on the lower half of the medium term range. Bias is turned neutral for now. We’d maintain that firm break of 1.2203 resistance is needed to confirm underlying bullish development in the cross. Meanwhile, firm break of 1.1598 support is needed to confirm bearish development, probably due to confirmation of no-deal Brexit. Otherwise, we’ll just wait-and see what’s next.
Similarly, EUR/GBP opens lower but it’s held well above 55 day EMA, in the upper side of recent range. Break of 0.8861 support is needed to confirm completion of the choppy rebound from 0.8670. Otherwise, another rise through 0.9229 and 0.9291 resistance zone is expected, at a later stage.
