GBPUSD Breaks 1.30 on Brexit Woes!

GBPUSD Breaks 1.30 on Brexit Woes!

GBPUSD has broken the 1.30 level hitting a low of 1.2952 in early morning trading.

The Central Bank of England raised rates last week, as expected, by 0.25%. In normal circumstances an interest rate increase would be positive for a currency BUT in this instance a statement by Mark Carney on BREXIT killed sterling.

He warned that a “NO DEAL” Brexit is “UNCOMFORTABLY HIGH”. No market likes uncertainty and uncertainty on this scale resulted in a major sell off of sterling.

We have a new round of talks between the UK and the EU this week, so let’s see if any progress is made which could give sterling some reprieve.

From a technical perspective everything points down, BUT, remember it’s news triggers that drive technical analysis more than technical analysis itself so if you’re looking for a trade here keep your ear to the ground on statements coming from both sides.

Also, don’t forget the USD is the other side of this pair and you got to watch out for positive or negative news coming from the USA.

1.2775 is the next key level if the bad BREXIT news keeps coming.

Join us for our next live webinar TODAY, the 6th of August.

The Top Trading Do’s and Don’ts


CM Trading is the Brand name of Global Capital Markets Trading 

The website is operated by CMT Processing Limited. 


Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

© Copyright 2020 - CM Trading - All rights reserved