GBP/USD looks set to consolidate near-term after its jump Wednesday to its highest level since September 7, more than six weeks ago, on news that the EU and the UK are to resume talks on their trade relationship once the current Brexit transition period ends on December 31.
The negotiations will restart Thursday afternoon and are planned to continue over the weekend despite few signs that the two sides are close to agreeing on the key issues in dispute: fisheries, state aid and dispute resolution.
In the meantime, UK Chancellor of the Exchequer Rishi Sunak is due to make a statement to the Westminster Parliament Thursday in which he is expected to announce extra help for businesses hit by the Covid-19 pandemic.
More broadly, though, GBP/USD could be held back by any further move into the safe-haven US Dollar as traders worry about the lack of progress on a new stimulus package for the US economy and surging coronavirus cases.
