The GBP opened the new trading week with a considerable gap of 170 pips, which shouldn’t be a surprise, considering the rumours that the UK is preparing to leave the single market, the Customs Union and the jurisdiction of the European Court of Justice. The British prime-minister is expected to make a speech before the Parliament on Tuesday, clarifying the government’s intentions about a “hard exit” from the EU.
From a technical analysis point of view the GBP/USD pair is in a key zone of support around 1.20 – 1.21, which could prove quite strong.
For the moment the pair is stuck in a relatively tight range around the support zone. Whether the market participants will attempt to recover the gap or not depends, I think, on what will be said in the UK Parliament tomorrow.
For the moment trading this pair is quite risky, because it is strongly dependable on the political and economic factors relating to the UK status in the EU and the expectation for a “hard exit” policy of the British government.
I fully agree with your assessment!
ReplyDeletePound is very fragile, all attention is on May.
ReplyDeleteIt could have found some support.
ReplyDeleteThe fundamentals pushed the pair to the upside.
ReplyDeleteGood posts, very helpful for all traders.
ReplyDeleteGood post!
ReplyDeleteGood point! I'll keep an eye on it.
ReplyDeleteGood insight.
ReplyDeleteInformative read, thanks.
ReplyDelete