Forex Signals Brief for Sep 3: Brexit Worries Return for the UK
Rowan Crosby • 2 min read
The Pound will again be in focus today after getting hit hard yesterday, amid more Brexit worries.
Just when we thought new PM Boris Johnson had got things back on track, it now looks like the UK could be headed to an early election. The move comes as the two major political parties continue to be at loggerheads on a Brexit plan.
Yesterday, the PM addressed the media to encourage lawmakers not to create another ‘pointless delay.’ All of which makes it look like the UK could be headed back to the polls if there is yet another stand-off.
The political back and forth hurt the GBP/USD badly and it was clearly in focus with the US and Canada on holiday. I expect it will be in-play again today, so be ready for some possible volatility.
When the US traders return there will be some focus on ISM Manufacturing PMI as the key data point, while we also get construction PMI from the UK.
Forex Signal Update
The FX Leaders Team finished with 3 wins from 3 signals to start the week strongly.
NZD/USD – Active Signal
The NZD/USD has been getting walked down in a sign of serious selling pressure by big money players. We are short on the break of this key level and price is ticking very close to our TP.
EUR/GBP – Active Signal
The EUR/GBP has been generally pretty soft and we are holding nicely below key resistance at 0.9100. We are short looking for some more downside while this level holds.
BTC has bounced and is now back above the $10,000 level but I won’t be turning bullish just yet.
Technically, price is still making lower highs. As you can see the top of this resistance area is around $10,500 which coincides with the down trend line.
We are also not able to get to caught up in exact number levels with BTC. Spreads are wide and there is no one major exchange so we see differences in prices. That makes me think that this is still a test of $10,000 to some extent.
So I expect the real test to be at the current $10,500 level where the sellers should step up. If they don’t and price breaks through and holds, only then will I shift my bias to the long side.