GBP/USD Signals Update
No signal was given last Thursday.
Today’s GBP/USD Signals
No signal is given today.
GBP/USD Analysis
My last analysis was made on the day of the Scottish independence referendum last week. I predicted that the GBP would rise dramatically as soon as it became likely that the result was positive for remaining in the UK, but would fall even more dramatically if it seemed like that the result would be in favour of going independent. I recommended trading this pair for a pro-independence vote, as the USD is so strong, and trading GBP/JPY for a vote in favour of the status quo, as the JPY was so weak.
I had also written that there was not going to be an exit poll after the voting ended. I was misinformed and there actually was an exit poll of sorts at 10:30pm U.K. time that day which forecast the result accurately. At that moment the GBP rose strongly against all currencies, but then began to fall as soon as the official results began to be released with profit taking. I had expected the momentum would continue into the London session, but I was wrong about that.
The rise in this pair brought us up to the 1.6500 level, which I had forecast correctly would act as resistance.
I am wary of trading this pair right now after it has made such large, dramatic movements. I cannot measure any likely support or resistance levels within a range of about 200 pips either side of where the price is currently, so I think it is best to leave this pair to settle for a while and carve out some levels that can be used as more reliable guides than anything that we have now.
There are no high-impact events scheduled today concerning either the GBP or the USD. It is likely to be a very quiet day for this pair.