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Breaking News: GBP/USD free-falls below 1.3100, uptrend channel, as May rejects the EU's proposals

UK Prime Minister Theresa May says she will never agree to separate Northern Ireland from the UK. She also rejects the UK staying in the EU Single Market. The PM says that it is not acceptable at this stage of the negotiations to only reject proposals and not offer anything. She repeated her stance that no deal is better than a bad deal and that the UK is getting ready for a no-deal Brexit.

May finishes her statement by stressing that she will not overturn the referendum results and will not tear up her country. 

Here is another quote:

We are at an impasse...We need to hear from the EU what the real issues are so we can discuss them...Until we do we cannot discuss them.

I have treated the EU with nothing but respect

The GBP/USD is extending its falls below 1.3100. Support is seen at 1.3045, followed by the round number of 1.3045. The low so far is 1.3079. The pair breaks below the uptrend channel that characterized its trading in recent days.

Here is how it looks on the 15-minute chart. Click on the image to see a live GBP/USD graph:

GBPUSD falls on May's rejection of the EU

Rumors about a statement by May were circling throughout the morning and already weighed on cable and sent it towards 1.3200. The confirmation of a special announcement already pushed the pair to below 1.3150.

The BBC had reported that May will say she is not changing tack on her Brexit stance. The EU rejected the British Government's Chequers proposal in the Salzburg Summit. The British newspapers portrayed the rejection of the UK's proposals as a humiliation, adding fuel to the fire. 

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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