GBP Stumbles To A New Low

Not since 1985, that’s over 31 years ago, have we seen this kind of weakness in Cable. I don’t believe anyone including all the analysts had any idea the effects of Brexit would have on the British currency. The initial drop looked like it was possibly overdone, a few weeks ago it even started to show signs of a bullish reversal which to looked like the real deal. Then, since early September we saw the start of its free fall.

Theresa May’s comments – A Tectonic Shift In the GBP

UK’s Prime Minister, Theresa May’s statement on Sunday that a “hard Brexit” process will begin before the end of March next year has been the “straw that broke the camel’s back”.

Those words struck reality into the situation and then markets spooked with uncertainty; unnerving an already fragile market and sloping it further to the downside. News of a strong rebound in construction spending made absolutely no difference whatsoever to the slide.

Under normal circumstance, every technical indicator is pointing to an oversold situation and I have no doubt many speculators have taken positions on a bounce especially once the big figure, 1.3000 was breached. Since then, the big figure has been pulverized and now it is sitting at around 1.2730. For most Forex traders who looked for the bounce at the big figure, and got in a long position, all I can say is “I would rather be out of trade wishing I was in than in a trade wishing I was out.”

Forex Signal Trend Meters

Access to our Trend Meters, updated daily, is available with all ForexSignal.com memberships. See below for the Trend Meters for October 4-5, 2016. Forex signal subscribers can access our ForexSignal.com web dashboard to view current Trend Meters at any time.