Three people familiar with the latest rounds of Brexit negotiations on Tuesday stated that the EU is very pessimistic that a deal can be reached. The biggest fear on the EU side is that no matter what concessions they decide to give May, who brought in Attorney General Geoffrey Cox to find a solution to the Irish border backstop issue, will not be enough to win a majority for the deal in Parliament. The EU doesn’t want to give in to their entrenched position unless they are sure it will result in a deal. The fact that, for now, the UK took the threat of a WTO type Brexit off the table, has also reduced the pressure on the EU to give in.
The EU claimed that what Cox demanded is not acceptable. They are further angered that so closed to the March 29th deadline a new negotiator was brought in. EU officials described Tuesday’s negotiations as some of the worst-tempered over the past two years. Parliament will vote next week on a revised deal and while PM May’s team is preparing for yet another defeat, they also make it clear that May will not go back to Brussels to ask for more concessions. Should her deal be defeated next week, Parliament will take control of the Brexit process. May’s message is that if you don’t like this deal, you will like the alternative even less.
Brexiteers appeared to warm up to a revised deal in order to reach a compromise just last week, but their stance has hardened once again as the EU is unwilling to compromise further. Cox is trying to resolve the Irish backstop issue with his proposal that both sides agree to independent arbitration which doesn’t require the approval if the European Court of Justice (ECJ). The EU stated that it cannot accept such a proposal. The fear of Brexiteers is that the Irish backstop is open-ended and will force the UK to accept EU regulations. With time running out, the EU and UK positions remain unmovable as each side hope the other one will cave in first.
The British Pound has rallied over the past few weeks as traders believe that a no deal Brexit has been avoided and that either a deal will be reached or a delay requested. Are traders too optimistic on their bullish GBP trades and the overall direction of Brexit at the moment? Open your PaxForex Trading Account today and allow our expert analysts to guide you through the forex market!
The UK has acknowledged that EU negotiations have been challenging, but remain optimistic about a positive outcome. Philip Hammond, the Chancellor of the Exchequer, added that “Negotiating with the European Union is always very hard work and I think Geoffrey’s had a tough week negotiating and that week will continue. My colleagues need to think very very hard about the alternatives. The choice is between the prime minister’s deal or taking a step into the unknown.” In the meantime, opposition Labour Leader Corbyn is meeting with MP’s who support a soft Brexit in order to broker a compromise for his solution which will keep the UK close to the EU, while other favor a Norway type of deal. The EU remains pessimistic on a Brexit deal, but here are three forex trades which will steer profits directly into your trading account!
Forex Profit Set-Up #1; Sell EURCHF - D1 Time-Frame
After a completed breakdown below its horizontal resistance area, the EURCHF entered a corrective phase which is expected to continue. While the EU remains pessimistic on a Brexit deal, forex traders remain optimistic which further adds to bearish momentum in this currency pair. Price action is currently trading below its primary ascending support level and below its secondary descending resistance level from where a further breakdown below its secondary ascending support level and below its primary descending resistance level is anticipated. Forex traders are recommended to sell rallies in the EURCHF into the lower band of its horizontal resistance area.
The CCI has been losing bullish momentum as a series of lower highs have formed as price action receded. This technical indicator is currently trading in neutral conditions, but a move below the 0 level is expected to lead to a fresh round of selling pressure. Deposit into your PaxForex Trading Account now and join our growing community of profitable forex traders!
Forex Profit Set-Up #2; Sell GBPSGD - D1 Time-Frame
Optimism for a delayed Brexit or a deal with the EU has pushed the British Pound to the upside across the board. While the Singapore Dollar remains exposed to the fallout from the US-China trade war and impact on the entire Asian economic region, the GBPSGD has exhausted its rally. Price action is now trapped inside a bearish price channel following the push below its horizontal resistance area. This currency pair is now expected to be guided lower, through its secondary ascending support level and into its next horizontal support level. Selling rallies in the GBPSGD into the upper descending resistance level of its bearish price channel is favored.
The CCI already completed a breakdown below 100 and therefore out of extreme overbought territory. This added to a rise in bearish momentum which is expected to increase as price action contracts further. Subscribe to the PaxForex Daily Fundamental Analysis and follow our expert analysts who will guide your portfolio to over 500 pips in monthly profits!
Forex Profit Set-Up #3; Buy Silver - D1 Time-Frame
It is always wise to have a smart hedge in place. While Gold is the preferred method to hedge a forex account with a precious metal, it is often overcrowded and more volatile. Silver is therefore an often overlooked trade, but just as powerful. The most recent pull-back from multi-month highs back down into its primary ascending support level has created an excellent entry opportunity for traders. Price action is anticipated to stabilize and accelerate back to the upside until it can challenge the lower band of its horizontal resistance area. Forex traders are advised to buy the dips in Silver down into its next horizontal support level.
The CCI is trading in extreme oversold conditions, but has reversed from its lows. The rise in bullish momentum is now favored to lead to a breakout above -100 from where more buy orders into this precious metal are expected. Follow the PaxForex Daily Forex Technical Analysis and copy the recommended trades of our expert analysts into your own account for easy profits!
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