Brexit negotiations is in full speed. As the time is running out for a deal, diplomats and leaders stepped up but will it be enough? British officials state that today’s negotiations are vital. If there is no significant progress at the end of the day, negotiations may collapse. French President Macron and German Chancellor Merkel is directly in contact with European Commission President Ursula Von Der Leyen since Friday and this evening Boris Johnson and Von Der Leyen will talk about the current progress. Irish Prime Minister said that it is going to be difficult to reach a deal, and earlier he stated the chances are %50-%50.
GBPUSD is not like the probability of collapsing negotiations and fell %1.26 intraday. The key 1.3350-1.35 resistance zone which is limiting upside moves since 2018, is at work again. If negotiations won’t go well today, a fall to 1.3020 may start. Option pricing signaling that downward risks are increasing. You can check the details about option pricing and medium-term expectations in our early analysis.