Today, at 6am Malaysian Time, the UK finally exited the European Union.
A movement started since 2016.
Multiple resignation of MPs, change in Leadership, Civil War between party members, multiple voting processes, multiple elections, and now, we come down to the UK leaving the bloc after 47 Years being a member of the EU.
So what impact might it bring beginning Monday?
Not much besides the UK being anxious to negotiate a Trade Deal with the world largest economy, The United States.
Since the referendum back in 2016, British economy seems to be resilient than many economists expected. Unemployment rate still at a normal pace.
Yet the British Pound losses its steam since then.
But the main agenda in the next 11 months >> THE EU-UK Trade Deal. Some economists insist that this trade deal might be harder than leaving the EU and failing to negotiate a deal might hurt the UK economically.
Now let us look at my own analysis on EURGBP and some GBP pairs [GBPUSD / GBPCHF]
Looking at the Weekly Chart, EURGBP found its support at around 0.83900 region on Friday closing.
The last significant support will be around 0.83300
Take note that 0.83300 is the last lower low. Breaching this, price might test the last support at around 0.77000 region.
Trading Plans? I might Short if it does breach the last low and will only Long if the price breach the nearest Lower High.
GBPUSD looks appealing. Breakout out of trendline, new Higher High and a new Higher Low.
I might Long on this one.
Currently eyeing a retracement at around 1.30 – 1.31 region to execute an order.
In December GBPCHF made a false breakout. Currently hovering near its major Trendline.
No new Low spotted.
Might take a long position once the price stays above 1.28530 region. As this is the nearest SBR (Support Become Resistance)
Whatever it is, we can only predict the market. Anything can happen once the market reopens on Monday.
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Patience Is King
Disclaimer : Trading comes with a risk. Any material posted in this article are meant for educational purpose only.