- British Pound dropped like a stone against the US Dollar today due to the outcome of the UK referendum in which the UK voted to leave the EU.
- Is it the beginning of the end for the EU Zone? Many say other members will follow the same path soon.
- The GBP/USD collapsed and traded down by more the 1600 pips earlier during the Asian and European session.
Today, the UK voted to leave the European Union, and Brexit is now a done deal. There were a lot of moves noted in the European currencies, and mostly suffered heavy losses.
The Euro and the British Pound collapsed, and were seen dropping like a stone. Later, during the NY session today, the Durable Goods Orders figure was published by the US Census Bureau. The forecast was slated for the orders received by manufacturers for durable goods to decrease by 0.5%.
However, the result was horrible, as there was a decline of 2.2% in May 2016, compared with the last increase of 3.3%. The report stated that the “New orders for manufactured durable goods in May decreased $5.3 billion or 2.2 percent to $230.7 billion, the U.S. Census Bureau announced today. This decrease, down following two consecutive monthly increases, followed a 3.3 percent April increase”.
The US dollar was not affected much, as there was already a lot of impact due to Brexit.
GBP/USD Price Analysis
The GBP/USD pair was down by around 2000 pips during the past 24 hours, as it moved down from the 1.5000 high to 1.3220 low.
During the downside move, the pair broke a lot of important support areas, including 1.4000 and 1.3800, and created a new low not seen in the past 25 years.
The pair is currently recovering and trading near the 1.3700 levels. However, the current wave can be considered as a part of a correction, and once it completes the pair might head lower.
Overall, the market sentiment is strongly bearish for GBP/USD, which can take it further down.Tags: Brexit, British Pound, GBP/USD, US Dollar