The pound continues to respond to the theme of Brexit
For the pound it’s the most difficult time. On 11 December planned vote in Parliament on the agreement with the EU, and the balance of votes will depend on the strategy Brexit “hard” or “soft”.
For the “soft” version of Brexit the Prime Minister of great Britain Theresa may (Theresa May) are constantly subjected to comprehensive criticism, but the Cabinet presents this scenario as the only true and reliable. Hard to argue with that, because of the precedents that this is not history. However, the opposition believes that, among other things, London is too much bend to the interests of the European Union.
The mild scenario assumes that by the end of March 2019, a time when England will begin to exit from the EU between the parties will exist signed an agreement on trading conditions during the transition period. Hard in turn, such agreement does not provide for, and this means that the UK will have to adapt to external conditions in real time.
Earlier economists of the Bank of England and the government have estimated that the “hard” scenario would lead ultimately to the economy in a deep stress. Previously, the EU had agreed on the key parameters of trade agreements, the case for English politicians.
Frankly, within the agreement on Brexit many more subtle points, so the trade agreement is not the problem what else will have to work the politicians of Albion. There is another aspect of the border with Ireland, for example, and the issue of extending the transition period, and a number of other issues. It doesn’t pound optimism.
Considering the dynamics of the pair GBPUSD on the 4 hour timeframe, the observed testing the support level 1,2725. The current narrowing of the range is nothing short of a correction regarding the latest downward movement. Most likely (if not obvious) scenario further movement there is a break of support and a decline in the current channel to the mark 1,2435. We can not exclude the delay in the outset. In this case, short-term growth will be directed to the resistance of 1,2850.