GBP/USD less Brexit sensative and more data driven?

Today Wilco van Boxtel was interviewed by Jessica Walker on Dukascopy TV about the GBP/USD currency pair past Brexit. In this interview Wilco gives his view on the UK market data development and what influence this has on the currency pair movement. Let me elaborate here:

Price story

The Pound recently has made a double bottom around the 1.20 / 1.21 area. It moved strong away from that. That could signal a bottom forming. Today 15 februari 2017 we had a strong Claimant Count Change number of -42.4K and previous one was revised down to -20.5K. Means less people claiming unemployment benefits.. or better to read companies willing to invest in people more again? So probably good news for the UK economy. I will keep an eye on the GBP related news the coming weeks and months how this develops.

Price levels of interest

This shows the Daily chart of the GBP/USD where it keeps failing below Fibonnaci resisitance. The two downward pink levels show the double bottom area of 1.20 and 1.2150. This could be retested if price stays below 1.2550, the trouble area of the recent days.

Zoomed out Daily chart of GBP/USD where you see price area’s of a year back. Refelecting possible levels that it can return to. You read this chart from right to left. First you see the previous range breakout level at 1.29. In july 2016 you see the breakout gap level of Brexit around 1.38 where it has since stayed below. Earlier this level also was tested in Februari 2016.

You can trade the GBP/USD currency pair, on my Favorite Broker Dukascopy with their Excellent NEW jForex3 platform.

 

 

Wilco van Boxtel is Chief Currency Trader & Mentor at TradeReact. He has over 17+ years trading experience since 1998. Besides currencies he knows many other markets and assets. Now he is here to educate and inspire you to be successfull in trading too. Subscribe and follow his lead.