Forex Signals Brief for Jan 16: Brexit Worries Hang Over the Pound
Rowan Crosby • 2 min read
The news overnight has really been all about the fallout from the Brexit vote and what exactly that means for the UK and GBP/USD going forward.
Yesterday, the UK Parliament overwhelmingly rejected PM May’s deal by a staggering 230 votes. While the outcome wasn’t unexpected the margin was greater than many thought and as a result, has cast a shadow over the PM and the entire process.
The GBP/USD finished the day really where it started as now many are suggesting the initial March 29 deadline might well be extended, which was seen as a positive.
The pound will again be in focus today as we get a look at UK CPI as well as hearing from the BOE’s Carney.
In the US session, we get retail sales, which are going to be important given the number of companies reporting poor sales over the holidays.
Forex Signal Update
The FX Leaders Team finished with only the one signal closed out yesterday, which was a win in the EUR/USD
WTI – UK Oil has once again bounced and is now back above the key $60 level and holding on for now.
Gold – Active Signal
Gold has once again fallen away from the $1300 level and so far this is turning into a pretty important resistance level. We remain short here.
USD/JPY – Active Signal
The USD/JPY has so far just about hit our TP and also just about hit our SL. So we are really grinding back and forth so far, but the good news is this is with the trend, so hopefully, that is a positive sign.
Bitcoin is still testing $3,600 and the short bounce that we’ve seen appears to have failed.
Across the board, all the major cryptocurrencies have fallen away in the last 24 hours with Ethereum one of the weakest thanks to it pushing back an update.
BTC will have its work cut out to hold this level and as I have been suggesting the door is wide open for a test of the lows.