- Summary:
- EU'S Juncker ready to engage on new UK proposals on the existing Brexit withdrawal agreement, even as UK PM's spokeswoman speaks of Irish backstop options.
According to the newswires, The President of the European Commission, Jean-Claude Juncker, has been quoted as saying that the EU is prepared to engage the UK on Brexit if the United Kingdom is able to put forward suitable proposals which are “compatible with the Withdrawal Agreement”.
According to Juncker, “it is up to the UK government to come with concrete proposals that are compatible with the Withdrawal Agreement.” Juncker is also expected to speak UK Prime Minister Boris Johnson on Tuesday afternoon phone call.
In the meantime, a spokesperson for the UK PM Boris Johnson has told reporters that Johnson had a chat with Dutch PM Rutte earlier in the day. According to the spokesperson, the absolute nature of the commitment of the UK to the October 31 Brexit was understood by the EU and the UK PM was up for a Brexit deal. She also indicated that the UK PM had a number of options set out as solutions to the problematic Irish backstop.
“The PM has set out a range of options as an alternative to the backstop,” she was quoted as saying.
Technical Plays for GBPUSD
The comments from Juncker and the UK PM’s spokeswoman seem to have provided a lease of life for the Cable, with the GBPUSD edging higher on these comments. The GBPUSD pair is trading near session highs at 1.2285, where it is now testing the down trendline that connects the highs of price action from May 5 to the present day.
A break above this trend line with a 3% penetration factor will pave the way for attainment of the 1.2377 medium term resistance. Failure to break this trendline could see a resumption of the downside move to the 1.2173 support level.