Trading session on Wednesday was another unfortunate day for the British currency. EURGBP The pair rebounded to 0.9150, the pound against the dollar dipped to 1.2119. The main factor of the British currency weakness is the high probability of Brexit «hard» in which England will be forced to leave the European Union without continuing access to the European single market and the customs union. On Wednesday, the European legislators have once again rejected the claim of British Prime Minister Boris Johnson excluded from the agreement with the EU point about the Irish border. President of Germany, Frank-Walter Steinmeier also noted that "the negotiations on the supplementary agreement is unlikely to be resumed."
The same position is shared by the president of France Macron. According to his statements, "it makes no sense to provide respite for Brexit, especially if there are no significant changes in the political situation, whether it is an election or a referendum." For market participants such rhetoric was only one more proof of the gain confrontation between Brussels and London. It remains adamant himself Boris Johnson, who refused to negotiate with the EU, without exception, from the agreement provisions on "bekstope".
Apparently, 31 October England still leaves the EU, with the entry conditions will not matter. To avoid this is still possible. This requires a vote of no confidence Johnson and repeat elections. In such a scenario, major political changes should be expected already on September 2, when the British Parliament will return from vacation.
EURGBP BuyStop 0,9160 TP 0,9350 SL 0,9110
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