EU to UK No more sausages for you
European Commission Vice-President Maros Sefcovic is tired of waiting for the UK to implement terms on the Northern Ireland (NI) protocol and said the EU will investigate all options, which includes legal action and possibly even quotas and tariffs on British goods (including sausages). For the UK’s part, David Frost is considering the possibility of the UK acting on the Article 16 clause, which gives either side the right to right to act unilaterally If an agreement cannot be reached.
As part of the Brexit deal, Northern Ireland is considered part of the EU, and therefore, would assume the same trade laws as the rest of the EU. The NI Protocol was put in place to keep a “soft” border between the UK and Northern Ireland. However, the UK hasn’t been respecting the new laws. The UK says that the articles were meant to be more flexible due to the sensitive nature of the peace agreement. The EU says the UK needs to implement the written articles. Tensions have increased after the two sides began sparring over rules on chilled meats. As of Wednesday, there was no by-pass and negotiations have stalled.
The Pound took the brunt of the news of a standstill in negotiations. For perspective, EUR/GBP had been trading lower since the Brexit agreement was reached in late December 2020 until early April. However, since mid-February, EUR/GBP has been trading in a range between 0.8472 and 0.8736.
Source: Tradingview, FOREX.com
On a 1-hour timeframe, it’s easier to see that EUR/GBP went bid on the news of no solution in the talks from 0.8607 to 0.8638. Short-term horizontal resistance above is at 0.8646, 0.8651 and 0.8673. Near term support in the downside is at the day’s lows near 0.8588 and the June 4th lows near 0.8565. Below there, support doesn’t cross until the April 5th lows near 0.8472 (see daily).
Source: Tradingview, FOREX.com
GBP/USD had been moving higher since mid-September 2020 in an orderly channel formation. However, on February 18th, the pair broke through the top trendline of the wedge before failing at 1.4241 and forming a shooting star candlestick. Price corrected lower (red channel) and broker higher out of the correction channel on March 7th. Since then, GBP/USD appears to be forming a rounding top and a consolidation pattern between 1.4083 and 1.4250.
Source: Tradingview, FOREX.com
On a 1-hour timeframe, its easier to see how GBP/USD moved lower from 1.4175 down to current levels near 1.4115. Support is down at the June 4th lows near 1.4083 and then the all-important horizontal support and psychological resistance level of 1.4000. Below there, price can fall to 1.3940 (see daily). Intraday resistance is at 1.4159 and today’s highs near 1.4190. Above there, horizontal resistance is at 1.4189.
Source: Tradingview, FOREX.com
The Pound has been range-trading vs both the Euro and the US Dollar. However, if negotiations between the EU and UK over the NI protocol don’t end soon, the Pound may fall even further, causing GBP to break out its ranges.
Learn more about forex trading opportunities.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.
FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.
StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255
FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.
The statistical data and the awards received refer to the Global FOREX.com brand.
This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.
Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.
StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.
Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets
We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.
© FOREX.COM 2025