Brexit – new year, same story
Once again we see the same old game of Brexit headlines that drove traders insane in December. Good news, bad news, positive comments, negative comments – and all this mess resulted in chaotic moves: pound up and pound down.. again, again, again. Looks like the vote story repeats itself. On January 15th we will see how this story will end. Or not.
This morning pound jumped following fresh comments from Irish prime minister stating that the European Union will offer written assurances to support May during a vote in parliament. But here is a thing – those assurances are nothing unless they are legally binding. Which is not the case at the moment.
Price action follows this news flow and we again expect a lot of disappointing news until January 15th.
Hence our approach is still the same – sell every rally and quit positions fast. Price is currently at 1.2780 which is an entry for short position. We also will add to our short position at 1.2850 and ultimately 1.2890 – both are strong downward sloped resistance clusters.
We aim at closing positions at around 1.2700 and 1.2650 – both are strong supports. Price is very likely to bounce at these levels.
Have a nice day and safe trades !