FxWirePro: Sell GBP/USD targeting 1.18 in medium term as Brexit nears

Our calculations at FxWirePro strongly suggests that the British pound is set to bear the brunt against the USD as the United Kingdom is set to exit the European Union in less than 100 days, at least according to Britain’s new Prime Minister.

Britain’s new Prime Minister, Boris Johnson, who had campaigned for Britain to exit the European Union, has vowed to move the UK out of the European Union on 31st October 2019, when the current extension to get a deal done expires. Mr. Prime Minister said that under his leadership, the UK government would both prepare to negotiate a better deal, where there would be no backstop and prepare to tackle a disorderly exit from the European Union without an agreement.

The Prime Minister stressed that while he prefers to exit with an agreement and would work to get one done, Britain needs to exit the European Union on 31st October even if there is no agreement, as not dong such would seriously undermine the British democracy if the government fails to honor a democratic mandate. 

Trade idea:

• Sell GBP/USD at the current rate of 1.243 and at rallies with a target of 1.18 area, and the stop loss around 1.278 area.