Global macro overview for 26/11/2018

An extraordinary meeting of the leaders of the European Union Member States took place during the weekend. The agreement on the UK leaving EU structures was unanimously approved. However, this does not mean a happy end yet. Now Theresa May needs to get the consent of his compatriots. The agreement in its current form will probably be rejected during the vote in the British House of Commons.

When Theresa May heard the decision to approve the Brexit agreement, she was also informed that there was no way to make any changes to the currently agreed version. "The agreement obtained is the only one that was possible. There will be no other "- the chairman of the European Commission told the press. The May government is facing a tough task now. It must convince parliamentarians to support the agreement in its current form. Everything, however, indicates the failure of this undertaking. The British prime minister has many opponents in his own party, which means that it is likely that the necessary majority will not be obtained. In this case, the negotiations should be resumed. It is difficult to say if this will happen. The EU closed the Brexit case on Sunday and is only waiting for its approval by the United Kingdom. In the worst case, no agreement will be reached, which means the worst possible outcome for the United Kingdom.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market did not react very much after the news was published and there is no weekend gap either as the price is trading around the level of 1.2820. The nearest technical resistance is seen at the level of 1.2882 and the local high is set at the level of 1.2928. On the other hand, the nearest technical support is seen at the level of 1.2762, but the key technical support is still the zone between the levels of 1.2696 - 1.2723.


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