GBPUSD has hit historic lows after Brexit (UK exiting from the EU).
First off, we have so much pressure down, this is a pretty aggressive move down, and it looks like we are going to consolidate down here for a while. To be sure a low base pattern is forming and we could indeed see further lows from here, as the trend is firmly in place.
That being said, a weak dollar policy really benefits US trade and looks like a move down in the dollar is shaping up.
This is quite simply a reversion to mean trade, going out 3 years with FXB calls and a price target initially to 1.35 to retest its breakdown and ideally a move to 1.50 (being the mean).
On an intraday basis I am looking to Short the pair. This is why I'm choosing the long term calls, so I can trade around the position on different time frames
First off, we have so much pressure down, this is a pretty aggressive move down, and it looks like we are going to consolidate down here for a while. To be sure a low base pattern is forming and we could indeed see further lows from here, as the trend is firmly in place.
That being said, a weak dollar policy really benefits US trade and looks like a move down in the dollar is shaping up.
This is quite simply a reversion to mean trade, going out 3 years with FXB calls and a price target initially to 1.35 to retest its breakdown and ideally a move to 1.50 (being the mean).
On an intraday basis I am looking to Short the pair. This is why I'm choosing the long term calls, so I can trade around the position on different time frames
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