Two trades to watch: FTSE, GBP/USD ahead of expected Brexit trade deal

After 4.5 years a Brexit trade deal is expected to be announced today. FTSE is pointing to a stronger start whilst GBP/USD eyes 2020 high

Brexit 4

Brexit trade talks continued overnight between the EU and the UK and an agreement is expected to be unveiled today. The deal document, which is being finalised in the early hours of this morning is expected to be around 2000 pages long. If agreed, both sides will have until 31st December to approve the deal.

FTSE points to stronger start

FTSE rallied 0.6% on Tuesday as Brexit rumors swirled and on news that a deal could be imminent.
• FTSE set for a positive start again today, markets close half day.
• Brexit stocks which are closely tied to the performance of the UK economy such as banks, house builders, retailers and airlines rallied hard in the previous session and will remain in focus.

The FTSE continues to trade within and ascending channel dating back to early November. The index also trades above its 50 and 100 sma suggesting that there is more upside on the cards. The 50 sma also crossed above the 100 sma again, another bullish indication.

Immediate resistance can be seen as 6600 (high 18th Dec) before 6645 (December high) prior to 6850 (March high).

It would take a move below the lower band of the ascending channel at 6435 to open the door to 6300 horizontal support which has offered support since early November and then 6245 December low and 50 sma.

Learn more about trading indices.

Where next for GBP/USD on Brexit news? 

GBP/USD rallied to fresh weekly highs on expectations of a Brexit deal
• Hopes of an imminent deal are boosting sterling, whilst falling safe haven demand is dragging on the US Dollar

GBP/USD rallied to an intraday high of 1.3570 overnight and has eased back slightly to 1.3550. The pair continues to trade in its ascending channel dating back to mid September and also trades above its 50 & 100 sma – a bullish trend.

Immediate resistance can be seen at 1.3625 last week’s swing high and the upper band of the ascending channel. A break through here could clear the way for a move towards 1.37 a level not seen since early 2018.

On the flipside, immediate support sits at 1.35 psychological number, prior to horizontal support at 1.3440 and 1.34. It would take a break below 1.3330 the lower band of the ascending channel to negate the bullish trend.

Learn more about trading forex

More from FTSE 100


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.