GBP/USD suffering 'back to the backstop drawing-board' set-backs below 1.23 handle


  • GBP/USD is offered and testing back below the 1.23 handle.
  • Brexit worries cloud over the Pound.

There are a few news wires circulating around the EU apparently not considering or even discussing a time limit on the Irish Backstop, creating a wave of selling in the Pound as we head towards the 11th hour and the Brexit deadline at the end of this month. 

UK Prime minister Boris Johnson had promised to renegotiate Britain's current withdrawal agreement and demanded the abolition of the Irish border backstop arrangement which is designed as an insurance mechanism to prevent a hard border on the island of Ireland regardless of the future EU/UK trade relationship.

This has been a major sticking point where a solution has been hard to come by, leaving a red line between the EU and UK being able to agree upon a withdrawal deal so far to date, subsequently weighing heavily on the Pound considering if no deal is reached, or another extension is made, then the UK will be falling out of the EU without a deal on the 31st of this month by default. 

Back to the backstop, and now back to the drawing board 

Meanwhile, RTE reported on Monday night that Mr Johnson's plan to replace the backstop could include "customs clearance sites" on both sides of the border between Northern Ireland and the Republic of Ireland. However, this plan seems to be a non-starter at the get-go - Ireland’s deputy prime minister dismissed it as being so in a tweet just before midnight where he said it was the time that the EU and Ireland had a “serious proposal”. So, nothing here to curb the pessimism over Brexit negotiations and a general election looks to be on the cards - So, yet further unclarity and more clouds building over the Pound. 

GBP/USD levels

GBP/USD

Overview
Today last price 1.2285
Today Daily Change -0.0007
Today Daily Change % -0.06
Today daily open 1.2292
 
Trends
Daily SMA20 1.2369
Daily SMA50 1.2262
Daily SMA100 1.2449
Daily SMA200 1.273
 
Levels
Previous Daily High 1.2348
Previous Daily Low 1.2275
Previous Weekly High 1.2504
Previous Weekly Low 1.2271
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2303
Daily Fibonacci 61.8% 1.232
Daily Pivot Point S1 1.2262
Daily Pivot Point S2 1.2232
Daily Pivot Point S3 1.2189
Daily Pivot Point R1 1.2334
Daily Pivot Point R2 1.2377
Daily Pivot Point R3 1.2407

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops towards 1.1300 on dovish ECB headlines

EUR/USD is extending the drop towards 1.1300 after the ECB is debating over a potential increase in the APP at its meeting next week. The US dollar rebounds amid a cautious mood. Omicron, US-China woes keep investors on the edge.

EUR/USD News

GBP/USD battles 1.3200 amid Omicron jitters, USD rebound

GBP/USD is trading flat around 1.3200, struggling to capitalize on the overnight goodish rebound from a one-year low. Fresh COVID-19 jitters pushed back BoE rate hike expectations and undermined the pound. Resurgent USD demand further stalled aggressive bullish bets.

GBP/USD News

Gold eases towards $1,780 on resurgent USD demand

Gold remains on the back foot below $1,790 amid broad US dollar reboud. Market sentiment dwindles as virus-linked news battles geopolitical fears, Fed rate hike concerns. Friday’s US CPI becomes crucial as inflation expectations improve.

Gold News

Analysts believe Ripple could beat SEC lawsuit on one condition

Experts are weighing in on the possible closure of the payments giant's lawsuit with the SEC. Analysts predict that the payment giant's win in the SEC vs. Ripple case could push XRP to a new high.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures