GBPUSD LONG - Buying Cable on the pullback. 1.35 then... Parity
Long GBPUSD. it has been a few months since a good opportunity to trade the cable has arisen.
Daily and 4 hour charts have gone bullish with an incomplete sequence developing with the new highs this week. The daily chart is suggesting 1.35 as a likley target before a significant fall all the way to parity might follow!
The GBP remains highly correlated with the EUR and it is to be expected that the pound will catch up with the Euro strength we have seen of late.
Of course the political risk with the pound is significant, as time goes on the negotiations seem to get worse and worse for the UK and many market participants are questioning again if Brexit will happen.
As long as that doubt exists I am prepared to buy the GBP, if it disappears so will my enthusiasm for the currency.
Daily and 4 hour charts have gone bullish with an incomplete sequence developing with the new highs this week. The daily chart is suggesting 1.35 as a likley target before a significant fall all the way to parity might follow!
The GBP remains highly correlated with the EUR and it is to be expected that the pound will catch up with the Euro strength we have seen of late.
Of course the political risk with the pound is significant, as time goes on the negotiations seem to get worse and worse for the UK and many market participants are questioning again if Brexit will happen.
As long as that doubt exists I am prepared to buy the GBP, if it disappears so will my enthusiasm for the currency.