Jun 3 Trump arrived in the UK with an official visit. How did the FOREX market react to Donald Trump having official meeting with the British Queen and British outgoing PM Theresa May?
There were no sudden movies in the value of GB relative to USD, probably because no sensational announcements were made during the meeting. Naturally, there were a few faux pas, but Trump dosing off while the queen was saying her toast and then him slapping her on the back in a friendly manner (royal etiquette be damned) did not have any impact on the exchange rate of the British pound.
And what about Brexit? The final decision is only going to be made on October 31. Meanwhile, Trump supported a confrontation with Europe and pledged US backing. Pound sterling owners did not appreciate it: there is not much trust in Trump while leaving the EU may result in some nasty economic outcomes for Britain. Players started dumping the British pound which drove down its exchange rate relative to the dollar.
Currently, we're seeing a modest upward correction at a level of about 1.2677 dollars per pound. The next level at which it is expected to stop and push back is 1.2695 dollars per pound. And while we're still on the topic of technical analysis, should the pound go past that value, its exchange rate would then have to go up to 1.2750 dollars. And if that summit is conquered the next target is 1.2875.
However, if the after hitting 1.2695 per pound, the value of the British currency bounced back down, having completed the correction and continuing on its downward trajectory, it will keep falling until 1.2545 dollars.