Lynx4x

Long-term perspective on GBP/USD

Short
FX:GBPUSD   British Pound / U.S. Dollar
Fundamentally, I believe the U.K. will crash out hard from the EU causing GBP/USD to fall to parity. Coupled with weak GDP and rising levels of inflation , the economy is headed towards a recession in the coming year. Analysis was done based off a Fibonacci Retracement level from monthly swings to the downside. A further extension level was plotted, and with confluence of Elliot Wave principals, the 3rd leg of the impulse wave will reach at least 0.93$ levels.

Current interest rates:
U.K: 0.75%.
U.S.A: 2.5%.

= Positive carry-trade.