GBP/USD on Rollercoaster - Brexit Drama Still Driving Bears - Forex News by FX Leaders

GBP/USD on Rollercoaster – Brexit Drama Still Driving Bears

Posted Wednesday, May 22, 2019 by
Arslan Butt • 1 min read

Sterling dropped broadly on Wednesday and was on track for its longest-ever falling streak against the Euro. It’s mostly because Prime Minister Theresa May’s Brexit plan failed to win over both opposition lawmakers and many in her own party.

In response, the Pound dropped 0.3% to $1.2663, its lowest since mid-January. The Sterling is set for its 13th straight day of drops against the Euro, the largest run since the Euro started trading in 1999.

Taking a look at the GBP/USD chart, the pair is floating around 1.2665, having an immediate resistance around 1.2580. The RSI is also in the oversold zone, and investors are looking for a single reason to jump in the bullish retracement.

On the daily timeframe, GBP/USD may continue its bearish momentum until 1.2570, the double bottom level. Closing of a daily candle can trigger a bullish retracement. The FOMC from the United States can also impact the pair later today.

Support Resistance
1.2656 1.2785
1.2605 1.2865
1.2476 1.2994
Key Trading Level: 1.2735

GBP/USD Trade Idea
Fellas, the idea is to stay bearish under 1.2700 with stop over 1.2740 and take profit around 1.2662 and 1.2580.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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