Several EU members states would be pro a flexible Transition period 26/01/2018
Hungary, Ireland and Sweden at least are lobbying to have a weak end to the transition period beyond Dec 2020. Germany would in turn like to put a fixed end date .
That transpired from internal EU talks in preparation of the position paper to be published next Monday according to Bloomberg .
Brexit pros and contras, especially the latter ones are already voicing against as that would mean a longer attachment to ECJ rules.
What is unclear for now is: What’s going to happen to trade negotiations the UK might have with ex-EU partners during the Transition period? That will be the next big thing for EURGBP’s direction imo.
If the Uk gets the green light to “sign” deals instead of just “negotiating” them , it would be a major break through. Strictly according to EU membership rules, that is a no go and as long as this uncertainty is present I am sceptical about the viability of the GBP rebound.