FX_Trade_Plan
Short

Short GBPUSD Brexit deal trade initial entry

OANDA:GBPUSD   British Pound / U.S. Dollar
Today the sentiment is that there will be significant pressure on the pound. Trumps comments that the Brexit deal is a good deal for the EU and that the UK may not be able to trade with the U.S. have initially trigged sterlings sell off this morning. Those comments have been watered down to an extent by a UK spokesperson clarifying that the UK can make trade deals with the US. All that in combination with the month end flows favoring the greenback I like a GBPUSD short from the 38.2 pull back of this mornings sell off.

In addition this will be my first of a series of Pound shorts leading into the house of commons vote on the Brexit deal. The market seems fairly convinced that it will be rejected. This will drive sterling lower into the lead up to the event itself. I am going to be trading into this event. I feel the trade that has the most upside potential come the event proper is if the house approves the deal. The market is currently pricing in a rejection of the deal. If the house approves the deal there will be massive volatility as the market scrambles to price this unexpected turn of events. I will likely trade into the event with a series of trades and look to get in on the Monday before to take advantage of the expected spike. I will also be ready to close a short position and open a long position if the house in fact approves the deal.

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