GBP/USD plunges again, the hopes of yesterday will fly away
After having gained more than 300 pips yesterday in the face of hopes about the Brexit following an agreement between Theresa and Jean-Claude Juncker last night, the GBP/USD has since lost most of those gains, with a sharp acceleration to the downside in mid-day as a result of new information.
In effect, the attorney general UK Cox said that the agreement ripped to the EU by May does not change the legal risk represented by the agreement to “backstop” on the border with Ireland, which considerably reduces the probability that the agreement presented by May be validated during the vote scheduled for this evening at Parliament UK.
On the Forex, this has therefore resulted in a sharp fall in the GBP/USD, which just scored a hollow on the psychological level of 1.30, in the framework of an acceleration downward of about 150 pips in 30 minutes.
From a technical point of view, it should be noted that the GBP/USD is back below the moving average 100 and 200 hours completed yesterday, putting clearly into question the possibility of a rebound in the immediate future.
In the short term, the media monitor is located at 1.3050, 1.30 and 1.2960, while resistances are located at 1.31, 1.3150 and 1.32.
Finally, it should be noted that the fall of the GBP has also had an impact on the pair EUR/USD is weakening too, in proportions much lower, however.
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