GBPUSD – I will survive ?
Cross-party Brexit talks failed as expected (Corbyn dreams about second referendum which was clear from the very beginning ) and May will have another vote on June 3rd – apparently it will fail too. Expect new elections as May’s term is coming to an end. Political commenters see high probability of Boris Johnson as a next PM – which means potentially high chances of no-deal Brexit.
It looks like pre-calculated Brexit strategy if you have a flavor for conspiracy theories. First May will do all the ground work trying to agree with EU lawmakers – and apparently fails, and then comes charismatic and fearless Boris Johnson and says final goodbye ! Whether this is the ultimate show or not – still remains to be seen.
However, we can not but to notice the resilience that GBPUSD had through all these months of political chaos and economic uncertainty. For me it is a sign of inherent strength therefore I believe GBPUSD will come out winner even from a no-deal Brexit .
In the mid-term, charts also look oversold – which gives us opportunity of long trade from current levels. Be cautious, however, the negative headlines are likely to continue and potentially we can see breaks below 1.2715. Therefore, risk management and position sizing is extremely important here – do not take too big of an exposure and be prepared to add to your long position some 50-70 pips below recent minimums.
Have a nice day and safe trades !