Forex Signals Brief for Jan 15: Brexit in Focus
Rowan Crosby • 2 min read
All the attention today will be on the Brexit vote as PM May appears set for a tough time of things and markets are poised for a sell-off on a negative outcome.
Most of the focus is clearly on the GBP/USD, however, the lack of direction could well filter into equity markets across the globe.
It is expected that the vote will in fact fail and the real focus might just be on how wide the margin is. If it is by more than 100 votes than that would be extremely negative. A close count might be viewed as a positive.
A win seems highly unlikely however, there is a chance of course and that would be a big boost for the GBP/USD.
Members of Parliament will start voting on Prime Minister May’s withdrawal agreement around 7pm London time.
Forex Signal Update
The FX Leaders Team finished four and two to get the week rolling on the right foot.
WTI – UK Oil has fallen below the key $60 level, however we are pushing higher today. A failed bounce might be a short here.
Gold – Active Signal
Gold is coiling beneath the $1300 level and we are looking at a test of resistance shortly. The Brexit vote might be a trigger here, but we are still short on the longer timeframe.
USD/JPY – Active Signal
The USD/JPY has been turning things around during a weak period, however, the trend is still to the downside here.
Bitcoin is right now testing $3,600 and we are so far seeing price holding up OK.
This is really the bottom of the range and a break would open the door to another sharp sell-off so I do expect this level to be defended.
That said the trend is still down on the longer-term timeframes.