GBPUSD analysis – British pound continues downward trend


The British pound has continued to plummet lower against US dollar as Brexit no-deal fears intensify across financial markets.

30 July 2019, OctaFX – Sterling continued the downward trend in the Asian session on growing fears that the UK is heading towards a no-deal Brexit from the EU. The currency is trading at the lowest level it has since March 2017, when the UK first triggered Article 50.

Boris Johnson has rejected meeting with European leaders like Emmanuel Macron and Angela Merkel over the EU backstop issue. EU leaders have warned that the backstop issue cannot be negotiated. They have said that the deal they negotiated with Theresa May was the best one available. 

GBPUSD technical analysis

The GBPUSD pair declined sharply to a low of 1.2158, which is the lowest level since 2017. On the daily chart below, the pair’s price is along the lower line of the Bollinger Bands.

The price is also below all the short and medium-term moving averages while the RSI has dropped to the oversold level of 26. The accumulation/distribution indicator too has continued to drop. The pair will likely continue to drop as investors wait for a clear direction on Brexit.

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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