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.
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