Optimism is through the roof around the UK and EU reaching a breakthrough thanks to the great progress made towards settling the outstanding issues of fisheries. An eleventh-hour deal before the transition deadline will be a welcome development for the UK economy and should remove an element of uncertainty as we approach the new year.

Given how the outline of a deal was already agreed on Wednesday evening, an announcement is expected on Thursday morning as negotiators in the European Commission finalize the wording of the final treaty. UK Prime Minister Boris Johnson is expected to make a final call with the president of the European Commission Ursula von der Leyen this morning before we get the official press conference. If a trade deal is announced, the British Pound will most likely extend gains as a major thorn is removed from its side.

However, given the extraordinarily uncertain and complex nature of Brexit, it may be wise to expect the unexpected.

Looking at the technical picture, the GBPUSD is bullish on the weekly timeframe was prices trading around 1.3650 as of writing. Where the GBPUSD concludes today will be heavily influenced by what happens over the next few hours.