Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
FX Empire Editorial Board

The exact terms of the agreement are being settled to this day, with both the UK and the EU diplomats being unable to find a middle ground on the subjects of taxation, border control, etc. But the political issues aside, Brexit has been an absolute wreck to the markets too. For the entire two-year span, the GBP and EUR positions have been highly unstable and prone to tipping over whenever another wave of Brexit news hit. And while it was rather beneficial for traders in the short run, the market eventually became completely hostile to the traders.

How Brexit Ruined Daytrading

The daily Forex trading is affected the most — while on the longer timeframes, the traders can wait until the market swings back, the shorter ones don’t provide this privilege. The bears are specifically hurt by this situation since they have a hard deadline for every order.

A GBP/USD chart. Despite the abysmal USD performance due to the massive political instability and government shutdown, the GBP remains in the red.

The GBP/EUR market suffers too. Until the beginning of November, it was at least generally bearish, and the bull rushes were rather clumsy. Not anymore — ever since Theresa May reinforced her positions and survived the Votum of No Confidence, the market is completely at the mercy of the mass media. And while it still retains the downward tendency, the bullrushes are now powerful enough to close most bearish orders by StopLoss — which makes even the most desperate bears tread carefully.


The Future of Brexit

Theresa May insisted that Brexit will be resolved and all agreements will be reached by November 2018. If you haven’t been following the news as of late — it didn’t happen. Moreover, May managed to lose the key diplomats involved in the agreement and had to postpone the vote on the project since the Parliament was hostile towards it.

The only reason May herself remains in the chair of the Prime Minister is the lack of other leaders in the country. While the Vote of No Confidence against her failed, it is only because of the recent memories of David Cameron leaving the country headless in the aftermath of the first Brexit referendum. May seems to understand it too since she agreed to leave the government in 2021.

Overall, the situation is not likely to change anytime soon. The European Union is firm and isn’t likely to offer a further compromise — while the UK won’t accept the current conditions that limit their possibilities even further. It is likely that this situation will continue well in 2019 — or even resolve with the UK remaining in the EU.

How to Trade During Brexit

Remember “WarGames”? The only winning move is not to play. And while you can trade on the GBP during Brexit using technical analysis, you really shouldn’t. The patterns are depending on the adequate, predictable market, and do not work for the markets that are in a state of constant panic.

If you are not ready for substantial risks, you should switch to a less volatile or at least more predictable currency pair, i.e., USD/CAD and USD/JPY. While they are also affected by the weakening USD, at least the other currency remains more or less stable.

However, if you still want to trade GBP, you should carefully review your strategy and prepare for the large risks. Also, consider finding a broker with tighter spreads — it will help you maximize your profits.  Ideally, sign up for a JustForex ECN Zero account or any other account without spreads. This is a trustworthy company which has been working on market since 2012 and has millions of clients in 197 countries.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.