The EU and the UK have entered into a period of intensive Brexit talks [Video]
![The EU and the UK have entered into a period of intensive Brexit talks [Video]](https://editorial.fxstreet.com/images/Markets/Currencies/Crosses/EURGBP/iStock-628561816_XtraLarge.jpg)
Listen to the latest market mood for the EUR/GBP pair.
Weak EUR, Strong GBP
The EU and the UK have entered into a period of intensive Brexit talks. It is still in the best interest of the EU and the UK to try and reach a trade agreement before the deadline at the end of the year. The EURGBP pair should find sellers on rallies higher as expectations of a deal breakthrough grow. The headlines coming out for Brexit related developments are growing again, but the current mood is that disappointing Brexits headline is faded on the optimism that a deal will finally be reached.
Therefore, expect EURGBP sellers on any rallies higher as long as hopes of a Brexit deal remain.
Trade Risks
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The main risk to this trade outlook is if the UK firmly commits to leaving the UK without a trade deal.
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Any near term breakdown in talks will also invalidate this outlook.
Author
Giles Coghlan LLB, Lth, MA
Financial Source
Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.
