The Pound is consolidating after significant improvement. Overview for 23.11.2018

On Friday morning, GBPUSD stopped skyrocketing; right now, it is consolidating.

The British Pound is reaching stability against the USD at the end of the trading week. The current quote for the instrument is 1.2866.

Yesterday’s positive momentum in the Pound was based on the results of the meeting the European Union representatives and the British Prime Minister Theresa May. May managed to come to some strategic arrangements on the Brexit with the EU. It was howling success, which can be used by May to gain as maximum support from the Cabinet of Ministers as possible. 

As for the European Union, there will be the EU Economic Summit this Sunday, where the Brexit draft agreement may be signed. If it happens, the Pound will get great support. 

The Brexit talks is still the key topic for the Pound. It can be clearly seen that any failures in proceeding with the exiting procedure or discussing any nuances of the Brexit agreement, from Irish borders to trade relations with the EU, force a lot of mood swings among investors. 

One should realize that there remains less and less time for agreeing on all important issues, because the United Kingdom will have to start the exiting procedure at the end of March 2019. The EU proposal to extend the transition for two more years so that the parties had more time for discussing topical issues hung in the air. But it was already said earlier that in this case London would have to continue to pay contributions to the EU budget and follow its legislations and regulations for additional 24 months.