Pound Sterling tumbles below 1.3 today after UK junior government party – the Northern Irish’s Democratic Unionist Party (DUP) said it will support Rebel Brexit hardliners in the Conservative party to make Irish ‘backstop’ illegal.
October 2018 | AtoZMarkets – Last week, GBPUSD dropped fast below 1.31 after an inconclusive Brexit talks. The British government rejected EU’s proposal about the Irish boarder. Deep into the New York session last Friday, price returned to 1.31 briefly before it dropped and finally closed the week around 1.3060. The cable, which was expected to react positively to UK Prime Minister Theresa May’s talk that Brexit is 95% done, tumbled instead after report that a junior UK party is in support of Brexit rebel groups against the Irish ‘backdrop’. GBPUSD broke below 1.3 in the process and currently trades between 1.295 and 1.296.
GBPUSD Technical Overview and Important Price Levels
From the last update, we identified an emerging bearish impulse wave from 1.326. This is to continue the year long bearish impulse wave highlighting the Dollar dominance on other major currencies. The impulse wave above was first confirmed with the break below 1.31. With the recent break below 1.3, the bears are in total control as the market takes advantage of current Brexit ill talks. The next bearish target is 1.28 after price break below 1.292 support.
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