Awaiting Brexit Saga Finale

GBP/USD has added a further 35 pips after rallying Wednesday on the back of rumours that the UK & EU have moved close to clinching a Brexit deal. Cable sits at $1.3528 as we type.

• The recent round of tweets from UK reporters suggested that negotiators are still ironing out some final differences and talks are expected to continue through the night, with a deal due to be announced in the London morning, possibly around 7am.
• Lawmakers from both the UK & EU are prepared to hold emergency sessions to vote the deal through before the year-end. The Telegraph reported that Labour leader Starmer will likely ask his shadow cabinet to back the deal.
• A move through Dec 23 high of $1.3571 would shift bullish focus to Dec 17 high of $1.3624. On the downside, a retreat under Dec 21 low of $1.3188 would open up Dec 11 low of $1.3135.
• With no UK data releases left this week, focus will fall squarely on Brexit/Covid-19 matters.