Talk of Brexit and the GBPUSD near uncharted territory. To be fair, we are already in uncharted territory. A lot of this has to do with Brexit of course but there are other reasons.
If we are in a recession or heading to one soon, the BoE is at 0.50% and only has 50 basis point to go to 0. They will have to go negative. Perhaps many are realizing this.
Another reason could be the US Dollar. I have said why the US Dollar will likely go HIGHER. The higher the US Dollar, the worse the problems around the world exacerbate. You can read why I believe the Fed will be cutting to help the world but even cutting may not be able to weaken the US Dollar. Confidence Crisis looms.
I like what I am seeing here on EURGBP. We had a bit of a downtrend and now it is exhausting with no more lower lows being made. Perhaps a double bottom and head and shoulder are on the cards. Another confluence is the fact we are at a support zone and a demand zone.
Be patient and await for a break above 0.9110. Again folks, expect more craziness and volatility around the world. Many are realizing that central banks have no ammo and stimulus is on the cards. This would confirm that QE, which was supposed to be a desperate attempt to prevent a 1920's-30's like depression, is now the norm. The Keynesians cannot admit they were wrong. They will say they did not cut deeper into the negative enough nor did they print enough money. I also have spoken about why digital money is coming if we go down the MMT path.
If we are in a recession or heading to one soon, the BoE is at 0.50% and only has 50 basis point to go to 0. They will have to go negative. Perhaps many are realizing this.
Another reason could be the US Dollar. I have said why the US Dollar will likely go HIGHER. The higher the US Dollar, the worse the problems around the world exacerbate. You can read why I believe the Fed will be cutting to help the world but even cutting may not be able to weaken the US Dollar. Confidence Crisis looms.
I like what I am seeing here on EURGBP. We had a bit of a downtrend and now it is exhausting with no more lower lows being made. Perhaps a double bottom and head and shoulder are on the cards. Another confluence is the fact we are at a support zone and a demand zone.
Be patient and await for a break above 0.9110. Again folks, expect more craziness and volatility around the world. Many are realizing that central banks have no ammo and stimulus is on the cards. This would confirm that QE, which was supposed to be a desperate attempt to prevent a 1920's-30's like depression, is now the norm. The Keynesians cannot admit they were wrong. They will say they did not cut deeper into the negative enough nor did they print enough money. I also have spoken about why digital money is coming if we go down the MMT path.
