Credit: Shutterstock photoThe British pound has traded a bumpy ride since the Brexit result with the currency trying to recover (watch 1.30 as the bias setter) but not coming close to restoring 1.35+, which would be needed to suggest a bottom might be in place. Given the pace of the drop since June 24, consolidation and choppy trading should not be a surprise as the market looks for new ranges to trade. This includes vs. currencies other than the dollar, such as the EUR and JPY.
Sterling has also been highly sensitive to economic news and this should continue in the period ahead as markets await the invoking of Article 50, which would start negotiations for exiting the EU. The likely date for this is sometime in 2017 with the new UK government seemingly in no rush to invoke it.
So a question we have been asking in our current poll is, Where is the British pound headed this year? Has it seen the bottom? Any chance of a rebound? How low can it go?
The answers will not only influence the value of the British pound but also other currencies that it trades against as well.
Click to participate in our poll: Where Will the British pound Trade vs, the USD?
In appreciation of your participation, you will receive an exclusive report written by me that will give you a clue into what flows are driving the spot forex market at any point in time.
Jay Meisler, founder
Global Traders Association
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
