GBP/USD Downtrend Still In Force Despite PM Resignation

Russell Shor, CFTe, MFTA FXCM

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

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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