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GBP/USD Soars Above 1.35 On Reports of Progress in Post-Brexit Trade Negotiations

The British Pound is getting some solid upside traction after France eased border restrictions on Wednesday. There are also feelers that a Brexit trade deal could be inked in hours, if comments by officials close to the situation are to be believed. 

France has opted to lift the border restrictions it placed on Monday following the discovery of a new coronavirus strain that was said to be more potent in transmission than the original strain. Instead, entrants into France from the UK would now be required to provide a negative coronavirus test to be allowed entry. 

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On the Brexit front, a senior diplomat from the EU side was quoted by Reuters as saying that EU member states would have to approve a provisional version of the deal to take effect from January 1, 2020, and that a deal could come as early as late Wednesday.

The Pound has soared above 1.35 on these developments. 

Technical Levels to Watch

Today’s surge has taken the GBP/USD above the 1.35134 resistance level, pending confirmation. A confirmed break of this level opens the door towards the 1.36117 price area, which could be attained if a deal is confirmed. 

On the other hand, failure to confirm the break of 1.35134 could prompt a pullback, which targets 1.34765 or 1.33951, depending on how aggressive such a pullback is. 1.33193 and 1.32663 are further targets to the south.

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