You need to know the statistics about the impact on the Forex market as well as the binary options are pretty contradictory. Still, if you take the average value, the daily turnover is at least 9-11% of the total volume. The fact that one of the leading world economies did not join the Eurozone created a unique situation in the foreign exchange market - a counterweight to EUR/USD with high liquidity appeared.
Fundamental factors
The Brexit referendum, although it led to a sharp fall in the pound and a general imbalance in the movement of major currency pairs, free binary trading continued and significant fundamental events remained unchanged:
- Secondary data: index of business activity, unemployment rate, consumer interest, and retail sales index.
- GDP (gross national product). It is calculated each month and can be published three times including (introduction, revision, and final). Therefore, the reaction of the pound and major currency pairs will usually be delayed.
- Actions of the Bank of England (BOE). The headline is the interest rate, which can be revised after the initial publication. The speeches of important people usually do not cause strong movements.
GBP/USD technical analysis and trading signals
Despite the delay, the synchronous movement of the pound and the Euro continues to be the basic principle of technical analysis of the pair. Not only in the European session alone, but liquidity also continues to be high throughout the trading day. Volumes continue to be supported by the actions of the ECB and BOE, options, and commodity futures as well as the speculative actions of former colonies in the Asian region at the time of important news releases and reporting. GBP/USD is also actively used in swap and hedging transactions.
In this case, the best results are shown by medium and long-term strategies as well as intraday scalping. The Breakout/Rebound method of the price level gives a lot of false signals. The cross pair with GBP works similarly to the Euro, since a careful analysis of the second asset, is always necessary.
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