JLS: GBPUSD Long, Medium & Short Term Target Zone
The U-shape time series currency band indicates for the GBPUSD to downward in long term. The S-curve band also confirms for the medium term to downward and short term to upward by the sterilization undertaken by BoE. The anticipated of the prolonged European crisis is and perhaps the largest concern of the BoE in long term of which the EURUSD will be pressured in long term and may impact the price of GBP in the market being associated with EUR. Whatever the efforts to be undertaken by the BoE in the future, the prolonged on the weakening of EUR will impact for the weakening of GBP in the market. At such, Brexit is an ultimate option to escape from the anticipated future multi-years crisis. Brexit allows the BoE to manage the GBP individually and separated from EUR, therefore the Brexit is important long term plan to exit from anticipated long term crisis.
The time series interest rate differential based currency band indicates for the GBPUSD to downward in medium term and to upward in short term by the sterilization. However, BoE measures to stabilize the GBP will not be useful unless GBP to be seperated from the EUR, thus Brexit is important goal. European is export dependant nations and the United Kingdom is financial nation. Weaker EUR in the market supportive for European export dependant nations but weaker GBP may kick out the GBP out of the financial service.
The current medium term target zone for GBPUSD estimated to 1.3300-1.1800. At central band/parity, the BoE undertook several measures to defend the weakening of the GBP and the measures also supported by the CHF and JPY carry traders to strengthen the GBP, however the coordinated efforts become useless by the pressure from EUR, thus unless the GBP to be stand-alone from EUR then any effort to be undertaken will be useless and may bring the GBP to be weakened in long term associated with EUR.
The GBPUSD alredy hit the rock of the bottom at 1.2000 and GBP depreciated by USD for over 50 % the likely maximum long term target zone cycles to be managed. At such, GBP will continue to sudden bullish in short term after and when the GBPUSD to be pressured. This may put short trades to be always at risk despite the interest rate differential currency band indicated to.
The time series interest rate differential based currency band indicates for the GBPUSD to downward in medium term and to upward in short term by the sterilization. However, BoE measures to stabilize the GBP will not be useful unless GBP to be seperated from the EUR, thus Brexit is important goal. European is export dependant nations and the United Kingdom is financial nation. Weaker EUR in the market supportive for European export dependant nations but weaker GBP may kick out the GBP out of the financial service.
The current medium term target zone for GBPUSD estimated to 1.3300-1.1800. At central band/parity, the BoE undertook several measures to defend the weakening of the GBP and the measures also supported by the CHF and JPY carry traders to strengthen the GBP, however the coordinated efforts become useless by the pressure from EUR, thus unless the GBP to be stand-alone from EUR then any effort to be undertaken will be useless and may bring the GBP to be weakened in long term associated with EUR.
The GBPUSD alredy hit the rock of the bottom at 1.2000 and GBP depreciated by USD for over 50 % the likely maximum long term target zone cycles to be managed. At such, GBP will continue to sudden bullish in short term after and when the GBPUSD to be pressured. This may put short trades to be always at risk despite the interest rate differential currency band indicated to.