The political crisis in the UK | 04 September 2019

GBPUSD trading plan:

The political crisis in the UK is forcing investors to sell British assets. British Prime Minister Boris Johnson is in favor of "hard" BREXIT. The opposition, led by the left-wing Labour Party, will try to pass a forcing the government to request another three-month extension to the BREXIT deadline from the EU. The conflict between the two political parties in the United Kingdom is perceived negatively by investors. Bad macroeconomic statistics from the UK are putting additional pressure on the pound. British construction companies suffered the sharpest drop in new orders. The IHS Markit UK Construction Purchasing Managers' Index fell to 45.0 from 45.3 in July. British manufacturing contracted last month at the fastest rate in seven years.

Trading recommendation: Sell 1.2120 and take profit 1.2080.