Breaking: GBP/USD drops near 90 pips even as UK PM Johnson, EU President von der Leyen agreed to announce decision by Sunday

In a swift reaction to the unwelcomed end of the dinner meeting between UK PM Boris Johnson and the European Union (EU) President Ursula von der Leyen, GBP/USD drops heavily around 90 pips to 1.3321, currently near 1.3343, during the early Asian session on Thursday.

After nearly three hours of a dinner chat between UK PM Johnson, EU President von der Leyen (VDL) and their Brexit representatives, namely UK's David Frost and EU's Michel Barnier, no clear decision came out, as expected. On the contrary, a senior UK source signaled that large gaps remain between Britain and the UK.

While additional details from the even suggested that a firm decision will be taken by the leaders, relating to the future of the Brexit talks, before this Sunday, EU President VDL mentioned, “We gained a clear understanding of each others´ positions. They remain far apart.”

Read: Brexit update: Very large gaps remain between the two sides

Looking forward, EU Chief VDL’s further comments on what happened in the dinner, likely to roll out during Thursday’s European session, will be the key to watch as this will give hints of the future Brexit talks. While nothing major positive is expected, an assurance of continuation of negotiations can pare the recent losses.

Additionally, the UK’s October month’s data dump and the US Food and Drug Administration’s (FDA) approval of the covid vaccine will also be the key to watch. Furthermore, details of the ECB meeting and the EU summit are an extra burden for the GBP/USD traders to follow.

Technical analysis

Although the quote’s bounce off 21-day SMA, currently around 1.3320, suggest further consolidation of losses, bulls are less likely to return unless witnessing a clear break above the 1.3500 threshold.