UK believes there is no basis to resume Brexit talks, GBP trades heavy

The latest update for Brexit developments is not so positive for GBP, but there could still be light at the end of the tunnel.

Reuters reports that Britain said on Monday there was still no basis for trade talks with the European Union to resume, following a call between British and EU negotiators David Frost and Michel Barnier.

''The UK continues to believe there is no basis to resume talks unless there is a fundamental change of approach from the EU,” a statement from UK Prime Minister Boris Johnson’s office said.

“This means an EU approach consistent with trying to find an agreement between sovereign equals and with acceptance that movement needs to come from the EU side as well as the UK.”

However, the spokesman did describe the call as constructive and said that both sides had agreed to remain in close touch.

“The UK has noted the EU’s proposal to genuinely intensify talks, which is what would be expected at this stage in a negotiation,” the statement said.

GBP/USD remains in positive territory to start the week despite the hold-ups in talks.

GBP/USD is trading at 1.2983, a touch below the highs of 1.3024, up 0.53% for the day and trades up from a low of 1.2889.

Since the headline, however, GBP/USD has lost some ground and is pressuring a near term support structure.

15-min chart