Global macro overview for 28/03/2018

The overnight press reports from Great Britain about a possible further breakthrough in the Brexit case has hit the newswires recently. British press quotes representatives of the Irish government, according to which London is close to presenting a new idea, how to prevent the creation of a "hard border" with Ireland after Brexit. The Irish side has been assured that the work on the project is at an advanced stage. The issue of the border was one of the most important points that did not find a solution at the EU summit a week ago. Resolving in this matter would certainly simplify further negotiations, further diminishing the risk of "hard Brexit". This is good news for the British Pound, which is worth remembering after the holidays when the markets will move in a more orderly way.

Let's now take a look at the EUR/GBP technical picture at the H4 time frame. The market is still trading inside of the horizontal zone between the levels of 0.8688 - 0.9017 and as long as there is any definite breakthrough in the Brexit negotiations the price might remain inside of this area. In a short-term perspective, the price is bouncing from the oversold conditions and the bulls are testing the technical resistance at the level of 0.8808 level.


The material has been provided by InstaForex Company -