Brexit FX playbook

Russell Sandiford Reiwa-Capital.com

The FX majors will be impacted by the Brexit shockwaves, positive or negative.

The risks remain around a total falling apart of Brexit talks between the UK & EU ahead of the EU Council meeting, or a Deal being etched out and clearing the pathway for a timely last-minute breaking of the stalemate.

I favour a move to the upside on GBP pairs on the basis is the EU approval of Boris Johnsons new proposal for Brexit. The risk does remain that more time is needed, but I can still see bidders rushing off the sidelines and into GBP, seeing moves higher as early as today’s London dealing FX session.

The other way this can swing, is for a minor move higher in GBP based on EU approval, because of doubts still being present that the UK lawmakers can agree – but nevertheless, I am a BUYER.

Should we be buying/selling GBPUSD or GBPJPY from here?

GBPJPY Levels

The levels to drill into for GBPJPY have dominated traders minds the past 24 trading hours, particularly after the run-up we have already witnessed from 130.75 to 139.75 in GBPJPY.

Please remember to remain nimble, as extreme volatility lays ahead for the GB Pound against all FX counterparts.

Here are my levels and details playbook to prosper from Brexit dealings, in FX markets:

GBPJPY: is trading around 139.40 currently, can easily shift towards 138.50/138.80 as the Tokyo FX dealing session unwinds.

Look to enter:

BUY GBPJPY @ 139.00

Target: 148.00 (+900 Pips)

Stop: 137.00 (- 200 Pips)

The risk/reward metrics make logical sense, plus the upside is huge for a move towards 148.00.

Author

Russell Sandiford

Reiwa-Capital.com

Russell Sandiford is one of the most reputable market analysts in Australia with over 16 years’ experience in the global FX, indices and commodities markets.

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