{"id":5879,"date":"2019-02-08T08:48:23","date_gmt":"2019-02-08T08:48:23","guid":{"rendered":"https:\/\/www.wasteyourtime.co\/?p=5879"},"modified":"2019-09-06T13:29:15","modified_gmt":"2019-09-06T12:29:15","slug":"pound-falls-brexit","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/02\/pound-falls-brexit\/","title":{"rendered":"Pound falls on Brexit stage fright and BoE Decision"},"content":{"rendered":"

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2 min read<\/span><\/i><\/p>\n

\"Pound<\/p>\n

The Sterling pound yesterday dropped below 2-week lows in the early London session.<\/span><\/p>\n

The investors priced-in Brexit<\/a> uncertainty ahead of a crucial meeting between Theresa May and the European Commission President. <\/span><\/p>\n

The GBP\/USD currency pair dropped to new 2.5-week lows following the Bank of England\u2018s interest rate decision in the mid-European session.<\/span><\/p>\n

The GBP\/USD currency pair yesterday dropped to a low of 1.2855 following the BoE rate decision before rallying to a high of 1.2997 on Mark Carney\u2018s balanced comments.<\/span><\/p>\n

Sterling is trading little changed at around mid 1.2900 before the UK Prime Minister Theresa May reaches Dublin to meet her Irish counterpart and discuss the problematical border plan.<\/span><\/p>\n

Cable (GBPUSD, often referred to as \u201cThe Cable\u201d) tested fresh lows in the mid-1.2800s on Thursday. Although running to recover some ground later and close the day with small gains. It was a small drop in open interest and a decent raise in volume. <\/span><\/p>\n

There is a potential continuation of the bounce, which will leave at the same time occasional dips shallow.<\/span><\/p>\n

At the time of writing, the Pound was down 0.02% at $1.2932.<\/span><\/p>\n

\"Pound<\/p>\n

image Pound falls source Yahoo Finance<\/em><\/span><\/p>\n

The 4 hours chart shows that the pair quickly recovered above its 200 EMA, although it has already tested levels below it. A bearish 20 SMA keeps capping the upside, while technical indicators have recovered from oversold levels, now losing upward strength within negative<\/a> levels, indicating that the risk of an upward extension remains limited. The pair would need to surpass the 1.3040 resistance to be able to extend its gains toward the 1.3100 price zone, yet as long as Brexit uncertainty prevails, the most likely scenario is sellers taking their chances on spikes above 1.3000.<\/span><\/p>\n

Support levels: \u00a01.2925 1.2880 1.2835<\/b>
\nResistance levels: 1.2995 1.3040 1.3090<\/b><\/p>\n

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