The GBPUSD pair dropped sharply today after International Trade Secretary, Liam Fox issued a warning of a no Brexit deal. However, will the downward trend continue? What does the 6 August GBPUSD Technical Outlook reveal?
6 August, OctaFX – In recent weeks, the Theresa May government’s proposals on Brexit have been voted by parliament. On the other hand, the European Union has put strict red lines that Liam Fox believes will be impossible for the UK to agree.
May’s government has continued to put pressure on the EU to loosen the red lines, especially those on Northern Ireland. Fox sees the possibility of a No Brexit deal at 60%. This follows last week’s warning of a No Brexit deal from Jeremy Hunt, the Foreign Secretary.
6 August GBPUSD Technical Outlook
The GBPUSD pair dropped below the important support of 1.3080 last week after the Bank of England (BOE) hiked interest rates but Carney lowered the estimates for another hike this year.
Since then, the pair has been making lower lows and today, it reached an intraday low of 1.2935, the lowest level since September last year. This price is below the 25, 50, and 100-day SMA and is below the important support of 1.2955.
The downward trend might continue as traders continue to watch the Brexit debate unfold.
This article about 6 August GBPUSD Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.