GBP trades over the past three months have been
sideways, some climbing higher than 1.300 and dropping towards 1.26
Many traders have been implicated (and some
analysts) in misinterpretations of these moves, some forecast sharp falls, some
expected a corrective rise before the collapse
No one expects to return to pre-2016 levels
Those who followed our analysis will find that
we have been betting heavily on the strong rise of the pound despite the
negative news. There was confirmation that we are seeing a slow rise of the
pound sterling but those who have been looking for short periods did not
realize it
With the British exit referendum from the
European Union, the pound fell against the dollar down 1.20
The downtrend did not last long. Since December
2016, the pound has been moving upwards and continuously towards a return to
pre-2016 levels, but it needed positive news on Britain
Looking at the chart we will find that we were
on a long rally and that the targets were around 1.46 all the time while
analysts advised selling from slightly higher levels of 1.30
Strangely, at the same time we were seeing a
drop in the USD index from 101 levels but no one was paying attention to it. It
was a panic that dominated the buyers and pushed them either to close their
positions or get involved in bad selling deals
In any case, we still recommend buying the
pound without looking at the news with stop loss levels at 1.2300 and profit
taking at 1.43
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