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GBP/USD Signal - Brexit Complications - 08 Nov 2016

Signal details
Entry Price: 
1.2355
Close Price: 
1.2369
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 5 ratings

While the U.S. dollar is expected to rally across the board should Hilary Clinton win the U.S. election, we are looking for a surprise when it comes to the GBPUSD pair. The British pound has been grossly oversold over the past couple of weeks and we see the rally last week as only the beginning of a broader correction.

We would be buying daily calls on the pair at 1.2355 and are expecting a test of 1.2435 initially. This development is in line with the broad rally in risk assets which we expect in the aftermath of the U.S. Presidential election. The British pound is likely to benefit from a protracted internal confrontation in the U.K. around the country's Brexit plans.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.