Sterling Dollar Falls below a 30 Year Low

Points to consider in this Sterling Dollar Forex market:

• The Forex market continue to react to the shocking exit of the UK from Europe.
• The Sterling Dollar falls below a 30 year low and two percent in early Asian trading.
• Trade Strategy: Stand aside

The GBP/USD Forex market has now fallen below a 30 year low as investors continue to flee to safe haven assets after the dramatic vote by the United Kingdom to leave the European Union. This particular Forex market remains too volatile to even consider a solid technical analysis or placing any form or trade.

Sterling Dollar Technical Analysis

Let’s discuss today’s daily GBP/USD technical analysis. It is hard, with the Sterling selling off another two percent in Asia this morning to get clear handle of any upside technical barriers. The Pound is trading near a near term support level that lines up near 1.32, as we are below 1.3450 now. A break below this level, on a daily closing basis opens up the next downside barrier that lines up at 1.30. Below this level is 1.2950 and lower.

Trade Strategy

The volatility in the aftermath of the stunning Brexit from the EU is not even close to being over. There is a lot of political turmoil in the United Kingdom as their Prime Minister David Cameron has resigned and Scotland is making noises that it will do what it takes to remain in the European Union. Including a vote to leave the Monarchy. In Europe, other countries are making noise of also leaving the EU and the area stock markets are continuing to sell off. From a technical perspective, the GBP is too close to a technical support level to place a short GBP sale. Taking all of this into account, I am opting to stand aside and remain flat in this Forex market.