GBPUSD analysis – British pound bearish below 1.2080

The British pound has started to give back recent gains against the US dollar following a strong technical rejection from the 1.2150 level.

16 August 2019, OctaFX – Sterling declined after Brexit discussions continued. Yesterday, Labour Party leader, Jeremy Corbyn appealed to other UK parties to form a coalition with the goal of stopping Boris Johnson’s no-deal Brexit.

In a letter to rival parties, he asked the opposition members and some conservatives to support him in a goal to oust Johnson. As a result, he would become the caretaker Prime Minister. This idea was rejected by most of the people he wrote to. The chart below – from Bloomberg – shows the potential scenarios on Brexit going forward.

GBPUSD technical analysis

Yesterday, the GBPUSD pair declined sharply from a high of 1.2150 and reached a low of 1.2073. In the Asian session, the pair moved up slightly and is currently trading at 1.2087. On the hourly chart, the price is slightly above the 14-day and 28-day moving averages. The RSI has continued the downward trend from a high of 80 to the current 50. The pair will likely continue moving lower, to test the important support of 1.2050.


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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