GBPUSD Testing August 2017 Lows on No-Deal Brexit Fears
GBP price, news and analysis:
- GBPUSD continues to fall and could yet weaken further.
- Technically, the August 23/24, 2017 lows at 1.2780 and 1.2774 are now possible targets.
Our trading forecasts for Q3 have been published; you can find the GBP guide here.
No-deal Brexit Fears hit British Pound
Increasing concerns that the UK could leave the EU in March 2019 without a deal are continuing to hit GBP, which is still suffering from comments by UK international trade secretary Liam Fox that the chances of a no-deal Brexit are now “60-40”.
Since the start of this month, GBPUSD has fallen from 1.3117 to below 1.29. Having broken below support from a triangle pattern on the charts, there is now little support for the pair ahead on the lows almost a year ago at 1.2780 and 1.2774. Retail trader sentiment data are also sending out a bearish signal.
GBPUSD Price Chart, Daily Timeframe (July 25, 2017 – August 9, 2018)
Note though that the 14-day relative strength index is now just below the 30 level, suggesting the pair has been oversold and that hedging against a no-deal Brexit is likely to ease off in due course.
Resources to help you trade the forex markets
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.
--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.