BREXIT ALERT: POSSIBLE BREAKOUT IN XAUGBPGold priced in British Pounds has made a tentative break today.
This is not necessarily a Gold trade, but a warning that the British Pound is weak, and a further breakdown is imminent. Gold is caught in a bullish Dollar's crossfire, but Gold relative to GBP is telling is that a substantial currency move may be coming.
The GBPUSD has been grinding support for weeks. Retail investors are bullish.
Today, there is evidence that the British PM has lied. She has refused to publish the full legal advice she received from the deal she signed.
We await the Bank of England's commentary tomorrow (Tuesday), but the picture does not look good for the GBP.
If support breaks imminently, I expect a 1-2 month downturn in GBPUSD, after which the market may find its footing, in anticipation of a clear Brexit outcome next March.
