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GBP/USD at new 31-year low – what’s next?

. Wha The talk of a hard Brexit  and a set date for the event already hurt the pound and the move accelerated. GBP/USD is trading under the lowest levels seen after the referendum and reached 1.2736, the lowest in 31 years. What could not come up on Friday, fell down throughout the week. Good news is helpless. Good news is helpless.

More:  GBP/USD has more room to the downside – 3 opinions

Once again,  sterling ignores good news related to the economy. Markit’s construction PMI came out at 52.3 points, better than 49.2 seen in August and 49.1 expected. The jump above the point threshold reflects expansion, after a few months of contraction. The housing sector led the boom, led the bust, led the post-crisis recovery and remains weak, but now it is seen as growing.

Yesterday’s manufacturing PMI also beat expectations.  Tomorrow, Markit releases the most important of the purchasing managers’ indices: for the services sector. See how to trade the UK services PMI with GBP/USD.

GBP/USD chart. Further levels below are in uncharted territory. Watch out for round levels, especially 1.25. On the topside, resistance awaits at 1.2840 and 1.30.



Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.