EURGBP to hit 1.05 then should retrace back 0.9, thought
Analyzed move (EURGBP) to 1.05 just by predicting a hard NO DEAL Brexit to occur by the end of march, and some chaos surrounding it.
This is based on expected EU's unwillingness to re-negotiate a deal, they made it clear the previous deal is the only one to expect, and more importantly:
EU wants to leave UK as an example for other states that may consider leaving.
Post - predicted crisis, a deal would be expected to come after chaos, as UK is integral to europe and both parties need each other, then GBP will be a cheap currency to buy and EURGBP shall retrace to some previous level (unknown for now, maybe 0.9 to 0.95 range, but will revise if the first TP of 1.05 is reached).
Why EURGBP instead of other GBP pairs? looking to flow with the current, as Capital that will flow out of UK will mostly head to Europe.
(Similarly GBPCHF will be another pair of interest, may go as low as 1.08 in case of chaos)
Bear in mind that this is a months long trade (in case successful), personally using very low leverage.
This is based on expected EU's unwillingness to re-negotiate a deal, they made it clear the previous deal is the only one to expect, and more importantly:
EU wants to leave UK as an example for other states that may consider leaving.
Post - predicted crisis, a deal would be expected to come after chaos, as UK is integral to europe and both parties need each other, then GBP will be a cheap currency to buy and EURGBP shall retrace to some previous level (unknown for now, maybe 0.9 to 0.95 range, but will revise if the first TP of 1.05 is reached).
Why EURGBP instead of other GBP pairs? looking to flow with the current, as Capital that will flow out of UK will mostly head to Europe.
(Similarly GBPCHF will be another pair of interest, may go as low as 1.08 in case of chaos)
Bear in mind that this is a months long trade (in case successful), personally using very low leverage.
Trade closed manually:
stopping in this trade at 0.90 and will re-enter at 0.872
