Fall of the british pound in the Forex after the elections in UK, bet on the correction ?

The GBP (british pound sterling) is under pressure after the uk elections, as of Thursday evening, just after the announcement of the first results and the potential loss of the absolute majority in parliament by the conservatives, the pound has fallen. On the forex market, the price of the currency pair GBP/USD collapsed in the upper part of the graph it is passed around 1.2975$ at its high of the session at exactly 1.2700$ a few hours later, which represents a drop of the order of 275 pips or a loss of value of more than 9%.

By reaching the threshold of 1.2700$ the pound sterling affects the most-the bottom since the month of April. This fall’s course, which is related to elections british reflect the lack of market certainty, they want stability at the political level and in particular to the time at which the negotiations on the Brexit will be initiated.

Many analysts believe that at the end of the course of the british currency will return to level. In fact, one can imagine that “Brexit” is more flexible (contrary to what promised Theresa May, losing its absolute majority) could play in favour of the markets and reflect on the course.

For traders who want to play up and bet on the fact that this fall will be filled in the near future, be based on signals buyers can be interesting. One can possibly imagine a range of prices that is forming on the chart M30 with an evolution of the course in length to come, and Bollinger Bands which constrict, trading the explosion of these bands in the upper part of the chart might be a good idea. The chart above is taken from the trading platform of the broker eToro, allowing opening of a trading account from 200€ only and offering the right to the Warranty Forexagone.

And you, what is your directional bias on the pair GBP/USD, rather buyer or seller ?

Leave a Reply