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Old 30-07-2019, 12:00
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Default Re: Tifia Daily Market Analytics

GBP/USD: the fall of the pound has intensified
30/07/2019

The pair GBP / USD resumed falling amid risks for the British economy due to the increased likelihood of a “tough” Brexit.
Boris Johnson, who succeeded Theresa May as prime minister, said earlier that he was ready for a tough Brexit. On October 31, the UK should finally withdraw from the EU, even if no agreement is reached between the parties.
"The exit agreement is dead and should be canceled, but there is a possibility of a new deal", Johnson said on Monday during his visit to Scotland. His press secretary announced the Prime Minister’s decision to refuse to meet with EU leaders, unless they change their position. "The UK will withdraw from the EU on October 31, anyway", she said.
The pound fell 1.3% against the US dollar on Monday and also traded at the lowest level against the euro since September 2017. On Tuesday, the decline in the pound continues.
In the current situation, only short positions should be considered for the GBP / USD pair. Mostly long-term negative dynamics. The immediate goal of the decline is the support level of 1.2000 (2017 lows and the Fibonacci 0% level of the correction to the decline of the GBP / USD pair in the wave that started in July 2014 near the level of 1.7200).
Consideration of long positions can only be returned after the pair grows to a zone above resistance levels of 1.2480 (November 2018 lows), 1.2530 (ЕМА200 on 4-hour chart) with targets at resistance levels of 1.2775, 1.2840 (upper line of the ascending channel and ЕМА200 on the daily chart). However, this is an unlikely scenario.
On Thursday at 11:00 (GMT) the decision of the Bank of England on the rate will be published, and at 11:30 the speech of the head of the Bank of England Mark Carney will begin. The risks of a “tough” Brexit and the likelihood of a deteriorating economic situation in the country have a negative impact on the Bank of England, which is aimed at easing policies. Although, most likely, the bank will refrain so far from any changes.
Support Levels: 1.2110, 1.2000
Resistance Levels: 1.2400, 1.2480, 1.2530, 1.2670, 1.2700, 1.2775, 1.2840

Trading Recommendations

Sell in the market. Stop Loss 1.2230. Take-Profit 1.2110, 1.2000
Buy Stop 1.2230. Stop Loss 1.2150. Take-Profit 1.2400, 1.2480, 1.2530, 1.2670, 1.2700


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