GBP / USD finds firmer bottom above 1.3300 as UK appears to pull back on IMB

• GBP / USD continues to trade at heavy losses on the day, but has recently gained some ground above 1.3300 and even reached 1.3350.
• The UK could offer to withdraw controversial legislation if progress can be made in the Brexit talks, which could help a deal beyond the line.
• But the tone of the Brexit events on Monday remains unequivocally pessimistic.

The GBP/USD has been gaining traction above 1.3300 in recent trading, rebounding back to 1.3350 amid headlines suggesting the UK might offer to withdraw controversial domestic markets and tax bills, both of which violate the withdrawal treaty. the EU signed with the EU last December. if an agreement can be reached. From an EU perspective, the existence of these two laws has tainted the negotiations, so an offer to withdraw them could help facilitate a deal. However, as it stands, GBP / USD is still trading at a loss on the day of around 90 pips or just over 0.6%.

While it is good news for the negotiations that the UK is leaning towards withdrawing this controversial legislation, GBP traders have not taken it as a breakthrough.

Indeed, much to the disappointment of those hoping that a deal can be closed over the weekend, the EU and the UK are still divided on three big issues (fisheries, level playing field and state aid) and officials from both sides of the English Channel are sounding more pessimistic about the chances of a deal being reached. Some reports even suggested that the UK could withdraw from the talks on Monday if there is no further progress.

Traders therefore remain anxious / nervous waiting to hear the outcome of a call between British Prime Minister Boris Johnson and EU Commission President von der Leyen which started at 16:00 GMT and it is probably ongoing.

Technical levels