LONDON BRIDGE IS FALLING DOWN

21 giu 2020

The status of the UK's current economy is not in good shape. Although there has been some positive data recently such as better than expected Retail Sales and a decrease in the unemployment rate, we are still in the midst of a Covid 19 recession. Recent GDP data was released at a horrific -20.4%. Furthermore, for the first time since 1963, total government debt has exceeded the entire GDP. So now national debt is worth more than teh entire economy of the UK. This should be driving a weak sterling in the week ahead.

The news on the charts isn't any good either. The weekly candle has closed heavily bearish rejecting weekly resistance once again. The strong bearish move down also rejected a key level. Now I'm expecting a clear drop to weekly support at 1.2110. A possible retest of the key level is possible but even if it doesn't occur, ultimately price should fall to support.