Poor, poor GBP. We have been watching for weeks the troubles plaguing British pound and the scary thing is that troubles for the currency are only starting now? So, what is wrong for GBP today? What is going to happen to British currency today and in the nearest future?
Well, there can only be one reason for the fall of the GBP that we have been seeing in the last 24 hours – Brexit uncertainty. With Parliament resuming its job only on October, 14 it is clear the Johnson has reached the goal that he has been striving for all these years, ever since Brexit vote – no-deal Brexit. This scary perspective is not really sitting well with traders and investors and GBP/USD couple is very understandably sent into the selloff. Recovery is not likely to happen any time soon which makes the situation even worse.
Of course the growing greenback is also putting gasoline into the fire. GBP is not going to be able to recover with USD pushing on top of it and turning all of traders’ attention towards itself. But being a trader myself, I have to admit that it is hard not to watch USD only, when American currency is on the highest point since winter 2017.
GBP/USD in its turn is on the lowest point in 2.5 years, having breached $1.20 point and aiming even lower.
This is the situation that is for sure calling for trading signals.