GBP Rallies on Extension of Brexit Negotiations, but it Didn’t Last Long - Forex News by FX Leaders

GBP Rallies on Extension of Brexit Negotiations, but it Didn’t Last Long

Posted Thursday, October 15, 2020 by
Skerdian Meta • 1 min read

The GBP has been bearish since Early September, as the attention shifted from the coronavirus to Brexit. In September, the negotiations between the EU and the UK weren’t producing anything substantial, so the sentiment was negative for the GBP that month.

But yesterday we saw a 200 pip rally, as the negotiation deadline was postponed. Reuters reported on this earlier, citing the latest draft from the EU summit conclusions. This pretty much reaffirms the earlier report here, that there has been a slight change in language on the Brexit front by European leaders, now that they expect that the UK will also signal some intention to keep negotiations going beyond this week.

The GBP rallied higher, sending the GBP/USD 200 pips higher, but today it has reversed down again, and has given back 100 pips. Extending talks doesn’t mean that a real a trade deal will be reached any time soon, so don’t get too excited about this, since the GBP is shrugging it off already.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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