Brexit on the verge of victory – GBP/USD to 1.30?

24 June 2016, 07:24
Sherif Hasan
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ccording to various models and TV forecasts, the Leave camp is set to carry the day and win. Results keep on pouring in and while the count shows vote on a knife’s edge, it is clear that Brexit is performing well.

GBP/USD is under 1.42 at the time of writing and perhaps there is much more in store. The low so far has been 1.3998 and we had a big bounce from there.

Update: UK leaves the EU – it is official – expect more crashes

We are certainly getting closer to 1.30 with 1.3250 the new low as reactions come. Follow the live blog.

Many are waking up in total shock to this move. Germany reiterates that out is out and Japan is ready to act to stabilize markets.

For traders, the question is: is there more room to the downside? It must be done carefully: Do these 3 things if you opt to jump on the Brexit train

Yet as voting continues, the situation seems more desparate for the Remain camp. Markets are still seeing close results.

Many have had forecasts for 1.30 in case of a Brexit. This is below the 2016 low of 1.3830 and the 2009 low of 1.35. It is also a round number. We may not reach the round number, but a break of the post crisis low of 1.35 is certainly real. And just a few hours ago we were at 1.50 – that’s when I wrote about 3 reasons to sell GBP/USD.

Update: GBP/USD dropped to a new low of 1.3965 before bouncing back up. Things are somewhat crazy.


Fresh chart:


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