The British newspapers report that the British Prime Minister has succeeded in negotiating with representatives of the European Union. The United Kingdom is to remain in the customs union. Information, for now, comes from an undisclosed source.
Northern Ireland will not be treated in any special way. This probably solves the problem of the hard Irish border and paves the way for an agreement on Brexit. At the same time, May is on the way to a political agreement on the future of the economic partnership. Such a move would allow free trade with the EU.
Last week there were reports that the agreement could be reached by Tuesday. The outcome of the negotiations - if the news is true - is so favorable for the United Kingdom that it should be approved by the government and the parliament. Probably Theresa May will be able to secure his position on the prime minister's chair.
Let's now take a look at the GBP/USD technical picture at the H4 time frame. The pair reacted positively to the published information. The price in the new week opened with a gap up of around 60 pips. Since then, increases have already been slightly negated and the cable has returned below the round level of 1.30. The level of 61% Fibo at 1.3029 is still preventing any bullish rallies, just as the technical resistance at the level of 1.3041. Please notice, the market conditions are now overbought and the momentum is weaker than on the way upward, so a short-term pullback might occur any time soon. The nearest technical support is seen at the level of 1.2940-1.2920.
