The leaders of the European Union’s 27 member states on Sunday approved the agreement on the UK’s exit, European Council (EC) President Donald Tusk announced via his Twitter profile.
The EU leaders also expressed their support for “a close relationship with London” after Brexit will be finalized next year.
The Brexit agreement
The withdrawal agreement – a 585-page document – details the legal conditions for the UK's withdrawal from the EU on March 29, 2019. In addition, a 26-page political declaration touching upon the future relationship between the UK and the EU has been signed by the leaders. The representatives of the European states unanimously endorsed the exit treaty, which revolves around citizens’ rights, the Irish border problem, and the £39 billion divorce bill.
The agreement is yet to be approved by the British Parliament. However, as of today, most Members of Parliament are likely to vote against it, so Prime Minister Theresa May has to work towards convincing the Parliament to give the document the green light next month.
Sterling prices for 2018 Q4
On November 22, the GBPUSD pair closed about 0.8% higher on positive sentiment ahead of the summit. However, on Friday, the pound lost most of these gains after Spain and the UK failed to reach an agreement on Gibraltar under the new Brexit agreement. GBPUSD closed the week at 1.280.
The British pound traded moderately higher on Monday morning, as the discussions during the summit pointed to a win-win situation for both the EU and the UK. The UK and Spain reached an agreement over Gibraltar on Saturday, settling the difficult issue outside the Brexit negotiations.
From a technical analysis viewpoint, GBPUSD is expected to continue on a sideways or a slightly bullish trend on the 4-hour chart. This is because the 9-period moving average recently crossed the slower MA from bottom to top while the Stochastic indicator is indicating an oversold level.
However, don’t be surprised if the bullish trend slowly retreats. The British Parliament will submit the document to a vote in early December, and its approval is not guaranteed, as many MPs have expressed publicly that they are determined to vote against it.
Some members of the British Parliament do not agree with the current Brexit conditions, hinting that Theresa May has accepted too many concessions that favour the European Union. However, EU leaders have warned that a better deal won’t come. As an example, European Commission President Jean-Claude Juncker has already called for the UK House of Commons – the UK Parliament’s lower house – to vote in favour of the document and conduct the Brexit process as agreed with the EU.
“This is the deal, it’s the best deal possible and the EU will not change its fundamental position when it comes to this issue, so I do think the British parliament – because this is a wise parliament – will ratify this deal,” Juncker said, according to The Guardian.
Thus, the longer-term trend of the GBPUSD pair depends on the British Parliament’s decision. If the Brexit deal is not approved, the pair will likely enter into a new bearish trend, targeting the 1.270 support level as a first test. Exness traders are now waiting for the results to be released and will likely place trades within the first hour to catch the volatility. If you’d like a piece of that action, open an Exness account now and stand at the ready for what promises to be the biggest price break of the year.
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Your 4-step guide to opening a trading account
Step 1: Getting registered
It's very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the movie as you go through the first three steps.
Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results... both good and bad.
Step 2: Prove who you are
Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you'll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.
Tip: While you're waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.
Step 3: how to get access to the market
Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you'll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You're about to make your first virtual trade on the real markets.
Step 4: making a trade
As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.
As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.
There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.
Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.
Congratulations! You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you'll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?
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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. This article is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles. Please note that past performance of an asset is not a reliable indicator of future results.