British Pound Lowers Following Brexit News


OctaFX – The British pound has fallen towards the 1.3200 support level against the US dollar, as bearish Brexit headlines surfaced surrounding the Customs Union during the European trading session.

GBPUSD Falls on Brexit Negotiations

On Wednesday, the GBPUSD pair moved above the important 1.3217 level. This was the highest level since September 27. It was also the end of the cup level that the pair had been establishing.

Gains by the GBP were because of the USD weakness and the hopes that a compromise will be found on Brexit negotiations. The ADX is currently at 25, an indication that the strength of the trend has eased.

Similarly, the double EMA shows that the gap between the two has narrowed. Therefore, while the pair could continue moving up, traders should be cautious because it might also move lower to complete the cup and handle pattern.

Disclaimer

This article was provided by OctaFX. It should NOT 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.

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