The Pound updated its 31-year old low. Overview for 06.10.2016
06.10.2016
The GBP/USD pair is focused on expectations and fears that come from the Brexit; the currency pair is being sold regardless of the statistics.
The British Pound remains under significant pressure in the pair with the USD. Today, the Pound updated its 31-year old low; the new bottom is at 1.2656, which is much lower than the numbers reached in June and July. At the moment, the GBP/USD pair is trading around 1.2665, and there are reasons for even more sales.
Investors pay no attention to either the strong statistics regarding the British economy, or the activities of the Central Bank, which are performed preventively and intended for eliminating first problems after the Brexit procedure starts.
The panic was sparked by the comments of Theresa May, the Prime Minister of the United Kingdom, who provided investors with the information about the time, when the Brexit procedure was going to start. It’s March 2017. Although there might be no rough and significant stresses for the British economy, as everything will move slowly and smoothly, investors are afraid of the unknown. No one has ever exited the European Union, and without such precedents and cases, it’s quite scary to see the first one of them.
This is the main reason why the Pound is “flooded” with sales. They might as well become more significant and reach 1.26 or even lower. There are no support levels here, and the entire technical picture is being formed "from scratch”.
RoboForex Analytical Department
The British Pound remains under significant pressure in the pair with the USD. Today, the Pound updated its 31-year old low; the new bottom is at 1.2656, which is much lower than the numbers reached in June and July. At the moment, the GBP/USD pair is trading around 1.2665, and there are reasons for even more sales.
Investors pay no attention to either the strong statistics regarding the British economy, or the activities of the Central Bank, which are performed preventively and intended for eliminating first problems after the Brexit procedure starts.
The panic was sparked by the comments of Theresa May, the Prime Minister of the United Kingdom, who provided investors with the information about the time, when the Brexit procedure was going to start. It’s March 2017. Although there might be no rough and significant stresses for the British economy, as everything will move slowly and smoothly, investors are afraid of the unknown. No one has ever exited the European Union, and without such precedents and cases, it’s quite scary to see the first one of them.
This is the main reason why the Pound is “flooded” with sales. They might as well become more significant and reach 1.26 or even lower. There are no support levels here, and the entire technical picture is being formed "from scratch”.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.