More Brexit Talk, While the Pound Tumbles to Multi-Decade Lows - Forex News by FX Leaders

More Brexit Talk, While the Pound Tumbles to Multi-Decade Lows

Posted Thursday, October 6, 2016 by
Skerdian Meta • 2 min read

As the Brexit deadline gets closer, the Brexit talk in the European chancelleries gets more intense. The British PM May declared over the weekend that the Article 50, which is the official request to leave Europe, will be triggered in March. It's a shame they're not considering May (the month) because headlines such as "May may trigger Article 50 in May" would be hilarious.

Anyway, the talking heads are all over the place now that we roughly have a date (month). Apart from the everyday talk from British officials, today we had the IMF Chairwoman Lagarde and the mighty Germans comment on the issue.

The tanning mom (Lagarde) popped up a while ago saying that the unfolding of Brexit has been mild so far. You might consider that comment as a sign that she likes a soft Brexit, but to me, that's actually a comment which is urging the parties to move forward with Brexit already.

But the most important comment came from Germany. The German minister of economy Gabriel said "the negotiations goal should be to keep the UK as close to the EU as possible". Merkel came on next with a comment on how much access to the single market the UK must be given after Brexit. That was followed by another comment where she emphasized that full access comes with full freedom of movement.

That sounds like the Germans want to keep the UK close to the EU, just in case the Brits change their minds in a few years/decades. There's always fear from the unknown. Even the leavers in the UK, deep down want a soft Brexit.

Meanwhile, the GBP continues to be dumped as if there's no tomorrow. GBP/USD reached 1.2620s a couple of hours ago and it looks like there's no stopping it. Now the 1.28 and 1.2850 levels look juicier. I would love to open a long-term sell forex signal if the price gets there. By the time it does, the technical indicators on the daily or H4 forex chart will be oversold so it will be a perfect opportunity. Just stay tuned because we are waiting for that retrace, which might happen at any moment

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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