Forex Signals Brief for Oct 25: Is the UK Headed to the Polls?
Rowan Crosby • 2 min read
It’s shaping up as another chaotic few days in the UK with the failure of the UK Parliament to agree on a Brexit deal, again the cause.
This time, it looks like PM Boris Johnson will be unable to secure a deal by the end of October which he had hoped for. Now it looks like he will be asking for an early election on December 12.
It appears that a general election will be the only way for lawmakers to break the current impasse. However, Johnson will need to win a vote in Parliament by a two-thirds majority which could happen on Monday.
Whatever the result, it still appears the UK is some way off from getting a deal together and the GBP/USD will continue to be at risk.
Elsewhere today, there is some data to end the week in Europe, with the German Busines Climate the main one in the European session. That will impact the EUR/USD, while we will wait with bated breath for what is in store for the Pound to close out the week.
Forex Signal Update
The FX Leaders Team had another strong session with 3 wins from 4 signals. The week is looking really good to date, so we will be aiming to close it out with some more wins.
GBP/USD – Pending Signal
The GBP/USD has been holding up relatively steady given all that has been going on. Price is in a bit of a range as we can see on the charts, but a break of either side would lead to some follow-through. We are hunting a long entry today if one presents itself.
GBP/JPY – Pending Signal
The GBP/JPY has been a good pair to watch recently. With the safe-haven element of the JPY, it has the potential to outperform in times of risk-off sentiment. We are hunting a long position today as well.
BTC has made it’s big break this week since tumbling through the $7,800 level.
Now, we look for opportunities to re-enter to the short side if we can find good risk/reward spots.
To me, the obvious trade here is a break of the range here. Price is consolidating between, $7,400 and $7,500. Ideally, I’d like to see a break of that support and then a smash through the lows.
This is a classic technical pattern and one that gives a good opportunity to manage risk.