This illustrates the struggle of the retrace. Motto: first map, then position, and finally destroy.
Those that remember the infamous chart from Johnson elections will remember we are back to square one, another year has passed with the direction focused on a necessary component of 'how to make the country less worse off'. This direction alone does restrain the freeing advance, more thoroughly than any other set-up.
Bravo! Sellers were not afraid of the 1.35 highs before, because strong play in negotiations or not it could never bring down the outflows from Brexit; and with Trump winning in doubt it is restraining the pressure of Johnson to drive back to the EU side.
A breakdown is there for the taking. Good luck all those attempting to play it.
Comment
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A quick chart update here after all the headlines...
Hello, thanks for your analysis. In an event of a No Deal Brexit, do you expect GBP USD to retest Match 2020 lows, ie. 1.15?
From my point of view 1.2850 is a bit high level for such an economic catastrophe.. I was thinkind about 1.22 at least... the minimum..
DollarHouseCapital
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In it!
ICFX
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Similiar longterm conclusion. Just closed +45 pips short on this
FT_Lexicon
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Overall i consent your idea, but if brexit talk or other news we do not expected happens it'll see again last year's gbp action. So, that's why i hesitate to bet forex.
From my point of view 1.2850 is a bit high level for such an economic catastrophe.. I was thinkind about 1.22 at least... the minimum..