Sterling still remains under pressure as the ongoing Brexit anxieties let sellers to attack and it slumped to a 31 year low. As Britain has voted to leave EU, the economy might see slowdown as most of the exports of UK are with EU countries, which might hamper productivity and employment. Pound suffered the worst week in the week ending October 07, 2016 since Brexit as investors become worried followings statements from UK’s Prime minister and France’s President. Despite seeing a fall of 18% from the high it made in June 2016, major analysts across the globe are becoming more pessimistic on pound with expectations that GBP value could move to 1 GBP = 1 EURO .So my question is pound actually going to fall further from here or the recent fall in GBP represent the good buying opportunity ? When GBP/USD will advocate a rebound ? How will commodities react to the extension?
I doubt that the pound will be able to recover significantly anytime soon before the Brexit consequences are clear (a few years from now).
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hard to see it not having further downside from here..... the fall to this point has only been the pricing in the 'perceived' negative effects.....
it's seldom a good idea to buy into a downtrend....
no one can say for sure when the gbpusd will rebound, the charts should tell us.... it's a downtrend until the psar says different....
the gbpusd's price itself should have no effect on commodities..... a stronger usd will.....
there is little doubt in my mind the gbp's recovery will be the next million dollar trend trade...... just no time soon......
aud and nzd will probably move up first......h
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