Currently we believe that the Pound is setting up for a major swing back to the upside. Both the long term (monthly) chart and the daily chart are suggesting further bullish movement ahead.
But let us step back a bit: currently the situation is more unclear than before as in the past days British PM Theresa May’s proposed plans for a soft Brexit as well as a hard Brexit have both been rejected by the UK Parliament.
So What Lies Ahead?
As Theresa May clearly does not want to leave her position (she has already survived a no-confidence vote back in January anyway), she would also not lose face in the end if she calls out for a new referendum anytime soon. It is important to keep in mind however, that May has made it clear a number of times that she does not support the idea for a second referendum but could call out for one should the Parliament be unable to agree on a Brexit plan.
We believe that the markets are taking this into consideration and could break to the upside soon. If a new referendum follows through we could see the Pound moving to the old Highs at around the 1.40 area at some point. We bought GBPUSD at 1.3315 with SL at 1.3075 and TP at around 1.3990.
Risk Warning: CFDs are complex instruments and come with a high risk of losing your invested capital due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The content of this material and/or any information provided by BDSwiss Group should not be in any way construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by the BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Group accepts no liability for losses arising from the use of this data and information. The data and information contained herein are for background purposes only and do not purport to be full or complete.
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