I wanna get better entries on my harmonic trades. Can you help me plz?
Carsten_2020
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The fundamentals argue for GBP too.
• GBP is further undervalued, because of the exaggerated Brexit Angst. Now UK has not one disadvantage from Brexit. Especially the borders are still open for goods and there are no customs. Therefore, UK products are cheap for those who submit to EU.
• UK is in the end of the 3. Corona-wave while EU is in the very beginning of the 3. wave. EU is talking about end of lockdown in these days, but only cause the people are impatient and the numbers are low. An end of lockdown will occur in beginning of summer at the earliest possible. Cause of vaccination UK will get 3-4 month earlier out of lockdown recession. One can say, without Brexit UK would have become incredible big economic problems, cause the mutations would have been a game changer.
• The shares in UK are (cause of Brexit fear) relatively cheap compared to EU shares. This will attract capital from EU to UK and from US too.
• The interest rates will hike earlier to normal rates in UK as in the EU especially because Italy is nearly bankrupt again. EU must keep the rates longer low OR at least Italy will become bankrupt again.
• To buy GBP or British stock is also a good way to hedge risk as inhabitant of the bloc.
All weakens the EUR and strengthens the GBP in the next month. That’s why I´m short for the next month or maximum to the lowest price EUR had before 2016.