GBP/USD is trading to the downside again after the surprise plunge on Friday pushed price to a low of 1.1919. After Friday's crash, the pair recovered to a high of 1.2482 and that was the highest point before it took South again. Yesterday, GBP/USD had another mild crisis losing as much as 240 points going from 1.2330 to 1.2089. The recent fall happened in the evening hours of the European session and was not strong enough to continue in the same direction so the bulls took hold of the situation and managed to recover the pair to a high of 1.2225.
However, this looks far from the end of the Sterling crisis. The news is that the UK government will initiate the Brexit as soon as March next year. This means that until then, the future of the single currency remains under pressure. Even after March there could be another crisis as the uncertain times would have just begun.
Chart: GBP/USD M30
Let's see what effect the fundamentals will have on it today.
ReplyDeleteThe downtrend remains intact.
ReplyDeleteIt's still very bearish.
ReplyDeleteAs always, very detailed analysis.
ReplyDeleteThank you for the analysis, it's very useful!
ReplyDeleteVery interesting! Thanks!
ReplyDeleteCorrection movement continues for now.
ReplyDelete