Global macro overview for 06/12/2017

The press speculates that the European Union expects that by Wednesday (ie still today) London will present revised proposals regarding Brexit conditions - the delay may cause that the decision on the transition to the next stage of talks will not be taken during the December 14-15 summit. The point of dispute is the issue of the border with Ireland - meanwhile, the leader of the Northern Irish Unionists (DUP), which the group supports in the parliament, Prime Minister May's government said that this matter was not consulted with him and thus his party will not support this project in the parliament. Meanwhile, The Telegraph speculates about a possible revolt in government Prime Minister May inspired by the supporters of "hard Brexit", or Boris Johnson and Michael Gove.

The failure to sign a deal with Brussels for "sufficient progress" in the Brexit negotiations earlier this week has left Theresa May in a deep, multidimensional political bind. There is still no clear solution for the impasse, so the British Pound reaction is understandable: the currency is weakening across the board as it awaits any positive Brexit news.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The price has managed to hit the lower green channel line around the level of 1.3368, but there is still a room for another leg down towards the level of 1.3300, where the main channel support is. The top for the potential wave 2 is still seen at the level of 1.3550.

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