GBP/USD Downtrend Still In Force Despite PM Resignation
The below is the weekly chart of the GBPUSD. Cable has charted a lower peak (LP) followed by a lower trough (LT). This is the classical definition of a downtrend. The RSI(9) is also below 50 and indicative of an underlying bearish momentum. The weakness in the currency pair is a reflection of the uncertainty caused by Brexit.
Today PM Theresa May announced her resignation effective 7 June 2019. However, it is unlikely that this has allayed the Brexit uncertainty. It may result in a GBPUSD rally; however, this will be seen in the context of a bear market rally until proven otherwise. We continue to monitor.
Past performance is not an indicator of future results.
CHART SOURCE: FXCM MARKETSCOPE 2.0
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