GBPUSD Analysis: No-deal Brexit risk bearish for GBPUSD

September 9, 2020

By IFCMarkets.com

No-deal Brexit risk bearish for GBPUSD

United Kingdom is far from reaching a trade deal with the European Union, moreover the UK government has announced it will publish today a proposal for domestic legislation that revokes the “political declaration” on international obligations with respect to Norther Ireland border signed with the EU a year ago. The EU accounts for nearly 50% of UK’s foreign trade. The uncertainty about a trade deal with EU weighs on British Pound. UK Prime Minister Boris Johnson threatened to abandon the talks if no deal is struck by October 15. The downside risk of the prospect of no deal with the EU clearly outweigh recent positive UK reports such as better than expected nationwide housing prices rebound in August, as well as accelerating expansion in private sector activities as evidenced by better than expected Composite PMI report by Markit.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Sell
MA(200) Buy
Fractals Neutral
Parabolic SAR Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 1.2981
Stop loss Above 1.3481

Market Analysis provided by IFCMarkets.com

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