Monday 20th March, the EU and the UK announced that a deal has been agreed upon for a 21 month transitional period, and also progress has been made on the withdrawal treaty. It was midday Monday the 20th when GBP sky rocketed after the press conference of Brexit negotiator Michel Barnier announcing that the two sides have reached an agreement. Even though the news had been taken as positive for GBP, a contrary position was taken for UK companies which pushed FTSE into losses of more than 1%. There is still a long way to go as the Irish border discussions are treading water. The EU and the UK both agree that a backstop plan is needed for the Irish border but both sides remain divided on what this backstop plan could be.
Taking into account the latest updates on BREXIT talks, trading technique on GBP/USD pair needed to be adjusted. New buy orders are triggered up at 1.3909, with take profit 1.4200, trailing stop above 1.4080. A strong buy order can be placed around 1.3750, take profit 1.4080, and a trailing stop above 1.3900.