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During the next week, the global investors will find out whether the leaders of the European Union will agree to the Brexit proposal presented by the United Kingdom. There are rumors in the financial press that if the plan is rejected, the parliament will want to dismiss Theresa May. A group of over 50 parliamentarians, mainly from the Conservative Party, wants to end the term of the Prime Minister. The other rumors say, that the government is currently working on moving away from "soft Brexit" towards a more radical exit. This is to be May's way of avoiding a political catastrophe.
Juncker announced that the European Union is going to keep a firm stance on the conditions for the departure of Great Britain. In his opinion, the British negotiators should not expect a softening of demands. On the other hand, he assured, however, that the Union will be open to close cooperation with the UK after Brexit. However, the issue of the Irish border remains disputable.
Let's now take a look at the GBP/USD technical picture at the H4 time frame. The closer to the Brexit date, the more volatility it will probably be at the pound. GBP/USD is still above the round level of 1.30, although yesterday there were falls below this barrier for several hours. The local low was made at the level of 1.2965 after a very interesting candlestick was made. In the time of writing this article, the price is going down towards the level of 1.3000 already, the next technical support is seen at the level of 1.2965, just above 38% Fibo at 1.2972.
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