GBP/USD: Will the Pound fall further lower?
Goodmorning Traders and welcome back to EverythingFX on this cold and gloomy London morning!
The Great British Pound is currently trading at 1.21763 against the US Dollar during today's London session.
Traders, here we have it, we are currently approaching all-time lows on this pair, with the pound last seeing the 1.20000 region at the start of 2017 we are now approaching these levels once more. With a mini-surge in the pound witnessed a few days back, this was only down to traders pricing in PM Boris Johnson's enthusiasm once he was elected -which was quickly changed, as the odds of a no-deal Brexit has increased as the EU is expected to not budge on the current deal we have at the moment!
Technically, looking on a weekly timeframe, it is clear as day that this pair has just been sliding, with little to no retracement whatsoever. Having seen a big 160 PIP day yesterday we have seen the following through in the Asian session. Our next level of support remains 1.20000 psychological level which I wouldn't be surprised if we don't come re-visit over the next few days. One thing traders need to be aware of is the Fed monetary policy decision tomorrow where the market is highly anticipating a rate cut, traders are now on hold until we have the outcome of the event.
Fundamentally, will all this negativity for the pound the BOE is currently on hold as we are patiently waiting for an outcome on the Brexit deal. Until then we need to patiently wait till the market to present opportunities for us as we need to Trade what we see, not what we think! Do stay tuned to our market news section as well as our Social Media Accounts for rapid updates.