Today we are forced to ask ourselves – maybe it is not Brexit that made GBP/USD go into the slides. Maybe it is uncertainty of the future. Do not get me wrong, Brexit is bad as well, but there is nothing worse in the markets than not knowing what is waiting for you. And UK creates for us this exact situation – we simply do not know what is waiting for us. That forces us to sell GBP, sending is spiraling down. But, as soon as we see certainty, even it is certainty towards Brexit, we seem to be more relaxed with the couple.
Such seems to be the case today. As soon as exit polls for the General elections were published, we accepted that Conservative party is likely to lead this government and that Boris Johnson is going to have the possibility to go through with no-deal Brexit. But, as you can see, that didn’t exactly scare us away from the couple. On the contrary – the spike confirms that we are more than ready to trade GBP/USD even before the results for the elections are announced.
Will GBP/USD jump today? That we will have to see with our trading signals.