GBP falls to 31 year low after Brexit

GBP-USD-weekly-chart-20160705233135

2 weeks after Brexit, the GBP/USD falls to 31 year low of 1.2952 today. Please see this GBP/USD weekly chart to understand how the GBP has suffered from Brexit decision. Most economists and investors had been warning the British people of this situation if they chose Brexit and yet 52% of British voters chose Brexit after buying into the misleading stats and promises given by the Leave campaign. It is amazing how an educated country could make such a rash decision. I think it is arrogance by a small majority of British people that Britain doesn’t need anybody else to prosper economically. Unfortunately, the 48% people who voted to remain with the EU understood this but they were a pushed into a minority. Brexit is a reminder that illogical and stupid decisions can be taken in a democracy by misleading campaigns. Coming to forex trading the GBP/USD, the short trade makes sense till something changes fundamentally with the UK. So we can remain short on GBP/USD with stop loss at 1.3200.

References:
www.investing.com/analysis/brexit-fallout-worsens,-sterling-at-30-year-low-200140067
www.finance.yahoo.com/news/brexit-direct-democracy-referendums-000000954.html

Leave a comment

Your email address will not be published. Required fields are marked *