GBP dropped as UK Prime Minister's was placed in the intensive care

Information is not investment advice

Instruments to trade: GBP/USD, EUR/GBP, GBP/AUD, GBP/CAD

Almost two weeks ago Boris Johnson tested positive for the virus, yesterday his health deteriorated and he was placed in the intensive care. As a result, after such negative news the British pound plummeted dramatically today.

It created a political uncertainty in UK, as it would make things even more complicated than it was in such a fragile period for the country as struggling with the coronavirus and getting ready for future Brexit trade negotiations.

All the confidence that the British pound gained at the start of the week was immediately vanished. The market reacted so fast as the virus spread could be shrinking in the USA and Europe, and risk appetite of investors became stronger.

Technical analysis

Let’s look at the EUR/GBP chart. The pair had been declining since March 19. However, it hit the 200-day Moving Average at the point of 0.8755 or 61.8% Fibonacci retracement level on March 3. Then it reversed and went upward. The resistant line is on 50% Fibonacci level or the 0.89 mark. The next one is on 38.2% or 0.905.

Similar

08.08.2022 08:35 USD Moves Weird Ahead of CPI

The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.

04.08.2022 08:30 The NFP Release: One More Punch for USD?

The United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on August 5, 15:30 GMT+3.

03.08.2022 08:30 The UK Speeds Up Tightening

The Bank of England (BoE) will share its Official Bank Rate and make a statement on monetary policy on August 4, 14:00 GMT+3.

Share with friends:

Choose your payment system

Phone number

Select the best time for us to call you.

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.