GBP/USD Below $1.20 | Vantage FX

GBP/USD Below $1.20

January 16, 2017

With Brexit back in the headlines, markets are now expecting British Prime Minister Theresa May to make a clean break from the EU and caused GBP/USD to drop below the $1.20 mark for the first time since the October flash crash.

Now we’ve spoken about a soft vs hard Brexit on the blog before and questioned some market irrationality over the fact that dragging out the Brexit process in what they call a soft Brexit, and is Pound positive.

I can’t help but have huge questions over the extremely bearish nature over a hard Brexit that we know is coming and is still yet to do the damage to the British economy that some were expecting to all but collapse.

There are even headlines from City Index doing the rounds that if Tuesday’s speech from May indicates a hard Brexit, that Cable could fall to $1.10 in a heartbeat.


But sticking to the short term and onto the charts at today’s weekly open:

GBP/USD Daily:
Click on chart to see a larger view.

The daily shows the technical nature confirming why the bears have been in control.

With price now at the flash crash swing low, reaction off this level will be key.

GBP/USD 15 Minute:
Click on chart to see a larger view.

Zooming into an intraday chart, we can see that price opened right on the swing low support level and immediately has been bought back up into the gap.

This is the key level we will be watching to see if price can hold.

Just keep in mind that US banks will be closed in observance of Martin Luther King Day. This of course means the possibility of exaggerated moves thanks to an illiquid market.

Stay safe out there.

Do you see opportunity trading GBP/USD? Open a LIVE forex account with ECN Forex Broker Vantage FX.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.




Fast & Easy Account Opening Start Now!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!
Forex Promotions

Open a live account today to gain exclusive access to our 8 Forex Promotions. 

Find out more.