The technical damage here is severe, a wound that cannot be healed with a bandage, time is the only healer here. We have less than 60 days till the official fact of Brexit is stamped, meaning there is room for some further downside in Pound as FX markets price the reduction in market access and balance sheet adjustments.
Eyes on 120 as a good level to do some profit taking for the swing, outflows are going to continue at a record rate and you cannot afford to be sat on the sterling bid with all the downside risks in play, there are simply better opportunities. Boris has shown his true hand, Pound devaluation is not stopping anytime soon and for those who really want to stick the knife in then all eyes on EURGBP:
The clear out-performer though is in USD & GBPUSD via the carry:
Best of luck all those with UK exposure, capital flight in full swing.
Eyes on 120 as a good level to do some profit taking for the swing, outflows are going to continue at a record rate and you cannot afford to be sat on the sterling bid with all the downside risks in play, there are simply better opportunities. Boris has shown his true hand, Pound devaluation is not stopping anytime soon and for those who really want to stick the knife in then all eyes on EURGBP:
The clear out-performer though is in USD & GBPUSD via the carry:
Best of luck all those with UK exposure, capital flight in full swing.
