GBP/USD - IMPACT OF THE EU REFERENDUM
On the monthly chart above i have posted key points in previous years where the pound has taken a dive against the dollar. August 2008, the recession hits, the value of the pound drops from nearly 2.00000 to 1.35300 in 6 months. August 2012, the economy enters a double-dip recession after two consecutive quarters of contraction in the economy. Now, late June 2016 following the UK's decision to vote to leave the EU we have seen the value of GBP plummet, a 1700 pip loss in one day, reaching lows last seen in 1985. During this time of uncertainty and turmoil it is hard to see the pound recovering any of its value in the near future. I see the UK economy potentially entering another recession after the news of yesterday. Furthermore, due to this assumption, i have projected GBP to fall to the levels of 1.25000 - 1.20000 in the upcoming months. Let me know what you think in the comments below.
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