SBTA_UK

GBPUSD - DAILY / BREXIT WEEK AHEAD

Long
FX:GBPUSD   British Pound / U.S. Dollar
It is time to get back into fully discussing Brexit as we are now roughly 48 hours away from finding out the mid to long term fate of the pound.

I am just going to start by saying that i recon the British Pound is set to GO UP in value, and quite considerably so if we can avoid a no deal outcome.

Whilst i think the direction will be upwards, lets not forget the volatility that will come with it potentially causing a downward spike of 300pips +, before then retracing and going upwards to the realms of 1.35 / 1.38, as far as 1. 40 is the fluidity is there.

Technical perspective shown where the price is currently resting on the 200SMA and Fibonacci retracement line; quite a strong area of support.

We could even see immediate upside on market opening and the votes starting to get priced in early however its probably best to act on the day itself and not let the risk of FOMO affect your mindset. If a no deal outcome actually occurs (20% likelihood) then the downside will push the pound to sub 1.20 and beyond.