Yesterday's decision by the US Federal Reserve cut its key interest rate by 0.25% led to increased volatility in all financial markets. The ensuing dollar recovery, which was mainly due to the unwillingness of the regulator to further reduce interest rates, had a significant pressure on riskier assets. Against this background, the GBPUSD has once again updated its multi-year lows, and came close to the 1.20 support. It should be noted that the strengthening of the dollar has acted not only a factor of pressure on the pound.
Previously, "the Briton" has tried on its status as the main market outsider when just two days lost about 300 points of intrinsic value. We are talking about the threat of rigid Brexit, which is becoming more real. New British Prime Minister Boris Johnson has refused to meet with their European counterparts, if they do not agree to reconsider the deal on Brexit. Johnson insists that the conditions of the agreement were harvested provision bekstope EU in turn flatly refused to do so. If nothing changes in Halloween, UK "fly" from the unit without the deal, which could lead to serious economic consequences. Today at 14:00 GMT the Bank of England will hold a regular meeting.
Given that most of the world's regulators have already announced a more aggressive approach to the mitigation of economic policy, as the British regulator is unlikely to remain on the sidelines. Thus, if the Bank of England will allow the possibility of reducing rates at subsequent meetings, the GBPUSD quickly enough is below 1.20.
GBPUSD SellLimit 1,2150 TP 1,2010 SL 1,2190
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets. Traders community is not responsible for any losses in the case of the review of materials
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