Although the United States had a day off yesterday to celebrate Labor Day, which means there were no American traders or banks with investment funds in the market, the pound was not up to the rest. As soon as the European trading session opened, the pound immediately rushed to record lows. True, it still could not reach it, but given the confidence with which it is moving there, new records are clearly not far off. The reason for such a frisky movement lies, as it is not difficult to guess, in the triple damned Brexit. Just on Sunday, John McDonnell, the secretary of state's finance minister, said: "Do not underestimate how difficult it is to pass a law in one week, the prime minister knows this, which is why he is suspending Parliament. Deputies with many years of experience are now studying how we can introduce a legislative measure on Tuesday, Wednesday and Thursday that will allow us to prevent the development of the Brexit scenario with the absence of a deal without parliamentary approval. The best way will be presented on Tuesday." He made this statement live.
In other words, the Labor Party does not intend to give up without a fight, and yet they intend to manage to take the necessary legislative measures. However, realizing that their time was running out, the associates of Jeremy Corbyn decided to play it safe, and submitted the matter to the court. The first meeting will be held today. The Labour Party wants, by means of a court ruling, to rule out the possibility of Brexit without a deal. If they succeed, and the court makes a decision, then Boris Johnson will be forced to sign an agreement with the European Union, and then submit it to Parliament. The piquancy of the situation is that the Parliament requires the inclusion of clauses relating to the economy and trade in the text of the agreement. But the European Union does not want to do this, and argues that these issues will be considered after Brexit, and will become an additional agreement to the main document. It turns out that if the court takes the side of the Labour Party, then Boris Johnson will not be able to complete this epic with Brexit. Since the Parliament will be able to forever block any agreement that the prime minister will offer it. So the pound continues to be dominated by politicians, and their influence is exclusively negative.
The GBP/USD pair does not just show an active downward interest; it writes a new story. Overcoming the periodic level of 1.2150, accelerated quotes and now we have passed the psychological mark of 1.2000, and bearish interest continues to grow in the market. Considering the trading chart in general terms, we see that the downward trend is alive as never before, and it would not be long until a further decline comes.
It is likely to assume that the fall to 1.1986 is one of the steps of a further decline, but no matter how great the fear is, a local release is possible back to 1.2000 (+/- 40 p.), Where, when further information arrives, short positions will continue to grow.
Concretizing all of the above into trading signals:
• Long positions, it is worth considering with great care, it may look like local emissions, possibly above 1.2000.
• We consider short positions in the form of basic transactions, where further refills are made when analyzing the incoming information.
From the point of view of a comprehensive indicator analysis, we see that indicators in all the main time sections signal a decline, which reflects the general market background.
