Pound Hovers Near 30-Year Low After Landmark Brexit Vote

FXOpen

The Great Britain Pound (GBP) extended downside movement against the US Dollar (USD) on Monday after opening with a large gap and dragging the price of GBPUSD to less than 1.3450, following the landmark Brexit event. The price of the pound is currently being traded at the lowest level in nearly three decades. The technical bias remains extremely bearish because of a Lower Low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 1.3427. A support may be seen around 1.3227, the swing low of the recent downside wave ahead of 1.3200, the psychological number and then 1.3000, another major support.

On the upside, the pair is likely to face a hurdle near 1.3844, the major horizontal resistance area ahead of 1.4000, the psychological number and then 1.4500, another major horizontal hurdle as demonstrated in the above four-hour chart. The technical bias will remain bearish as long as the 1.5017 resistance area is intact.

Brexit Polls

The referendum – the vote in which everyone (or nearly everyone) of a voting age can take part – was held on Thursday, June 23 , to decide whether the UK should leave or remain in the European Union. “Leave” won by 52% to 48%. The referendum turnout was 71.8%, with more than 30 million people voting. It was the highest turnout in the UK-wide vote since the 1992 general election. England voted strongly for Brexit, by 53.4% to 46.6%, as did Wales, with “Leave” getting 52.5% of the vote and “Remain” – 47.5%. Both Scotland and Northern Ireland backed staying in the EU. Scotland backed “Remain” by 62% to 38%, while 55.8% in Northern Ireland voted for “Remain” and 44.2% for “Leave”.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on rallies appears to be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Gold Price Plunges After Climbing to $3,500 for the First Time
Commodities

Gold Price Plunges After Climbing to $3,500 for the First Time

As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
Shares

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report

On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is

1-Minute Scalping Trading Strategies With Examples
Trader’s Tools

Four 1-Minute Strategies for Scalpers

Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.