Four senior congressmen write to Boris Johnson in a warning over the WA

The tweet is a follow up of earlier informal warnings from Rep. Nancy Pelosi, Speaker of the United States House of Representatives last week.

Pelosi warned that Britain will be unable to secure a trade deal with the US if it does anything to undermine the treaty that brought peace to Northern Ireland after decades of violence.

The UK concedes the legislation would “break international law in a very specific and limited way,  but it has not gone down too well among top Democrats in the US.

“If the UK violates that international treaty and Brexit undermines the Good Friday accord, there will be absolutely no chance of a US-UK trade agreement passing the Congress,” Pelosi said in a statement last Wednesday.

If the deal passes the Lords, it looks increasingly likely that a no-deal scenario will be the outcome and that spells trouble for the pound. 

1D chart

There could be some room to the upside prior to the next impulse to the downside between structures on the daily chart.