Hey Traders, an interesting topic for discussion is Brexit fear as it is the most happening thing in global market right now. Sterling still remains under pressure as the ongoing Brexit anxieties let sellers to attack and it slumped to a 31 year low. As Britain has voted to leave EU, the economy might see slowdown as most of the exports of UK are with EU countries and Britain’s departure would lead unfavorable conditions for companies operating in UK, which might hamper productivity and employment. Pound suffered the worst week in the week ending October 07, 2016 since Brexit as investors become worried followings statements from UK’s Prime minister and France’s President. As per statement from UK Prime Minister, UK would begin formal negotiations by March, 2017. Despite seeing a fall of 18% from the high it made in June 2016, major analysts across the globe are becoming more pessimistic on pound with expectations that GBP value could move to 1 GBP = 1 EURO .So my question is pound actually going to fall further from here or the recent fall in GBP represent the good buying opportunity ? How long you think it is still a sell/fall? When GBP/USD will advocate a rebound ? How will commodities react to the extension?
The GBP/USD pair is establishing within a trading range over the last two weeks with upper boundary the 1.2500 strong resistance level and lower boundary the 1.2300 support barrier. The next level to watch is the 1.2670 to the upside if there is a penetration of 1.2500. Otherwise, the pair will drop down to 1.2100 and probable further down to the 31-year low.