In the Forex trading world, Pound sterling is one of the currencies that always be a favourite for traders all around the world. Pound sterling always competes with the other two currencies that becomes the favourite too in the trading world, which is euro and dollar. When GBP paired with USD, both of it will definitely have a good price on market trading.
It's a bit shocking knowing the decrease in the currency value happened on USD nowadays. No wonder that USD became weaker, especially in this Europe session. but this derivation of USD could bring advantage for another currency such as EUR to increase its value. But unfortunately, GBP became the only currency which can't take this moment as ‘good' opportunity.
What Happened to the Pound Sterling Nowadays?
As it has mentioned before, GBP couldn't take the derivation moment of USD to be its good opportunity. Why does it happen? Because GBP has reached the lowest level of its currency value in this Europe session. It was predicted that the Brexit issue was the cause of the derivation of the Pound sterling. GBP's getting weaker 1.4% towards the USD.
On the last week, USD couldn't reach its best position and never show a good work because of the sentiment towards The Fed that dovish to the increase of the interest rate of US and the economic prospect in the country. Besides, the enhancement of the house stock selling in the US market also couldn't uplift the USD.
GBP has experienced the increase of its currency value in the last month Friday trading up to 0.78% and defeated the USD in the level US$1.3209 per pound sterling. But even if that so, GBP come back to its lowest level this month that reached 1.29273. and this derivate predicted to be happened again on the next day to lower level.
What Makes The Ups And Downs of the Pound Sterling?
If we are talking about the factor that impacted the down of the GBP, there are many factors we could find. But there are several factors which became the main threat towards the GBP derivation. First, we can recall the Brexit issue that still becomes an unsolved problem. There are so many uncertainties which make more problem includes the currency.
Besides that, there is another factor that could affect the GBP value, which is the Theresa May's issue. There's an issue where the elite conservative party lead by Theresa May made a motion that could throw Theresa may as the leader. When this issue comes up, the value of Poundsterling increased. But then it came back to the derivation when the issue has stopped.
The issue about Theresa May may be related to the Brexit issue. There's a long discussion about Brexit proposal between the government and the opposition party. Unfortunately, the discussion hasn't reached the deal between two parties. Both of the parties claimed that the discussion is getting more complicated because of another party involved in the Brexit discussion.
Endless Discussion Brings Uncertainty to Brexit Issue
That endless discussion about Brexit issue between two parties brings uncertainty about the Brexit status. And this uncertainty also impacts the dynamic of GBP itself. It's because the GBP seems doesn't have a clear position to strengthen the currency value. That's why this factor really gives impact towards the ups and downs of the GBP itself.
Based on the graphic of the GBP/USD movement, it was moving under the MovingAverage 5 in the red line, 21 in the green line, and 125 in the blue line. Then, the Moving Average Convergence Divergen indicator was on the negative area which opens another possibility of derivation. The Stochastic indicator also reached the bottom but still out of the oversold area.