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.
Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). ‘Reiwa-Capital’ is a brand of Reiwa-Capital Pty Ltd (ACN 640 117 942) of Level 35, Tower One, Barangaroo Avenue, Barangaroo NSW 2000. The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Reiwa-Capital does not provide or issue financial advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.