In the current financial turmoil, the British pound doesn’t look like the currency of choice. At least, not versus the US dollar or the Japanese yen.
GBP/USD retraced more than 78.6% Fibonacci of the 2019 advance. Last week was the worst for the pair since the Brexit referendum. Despite the fact that the pair is oversold in the short-term, the market’s demand for the greenback remains strong. The GBP, on the other hand, is vulnerable because of Brexit and Britain’s large current account deficit. Finally, the UK is affected by the coronavirus outbreak. The advance above 1.2300 is needed for a correction to 1.2550.
Trade idea for GBP/USD: SELL 1.2185; TP 1.2055; SL 1.2210