I remember trading on demo account when Brexit was announced shorting it with a good well established friend of mine in Africa...It was great fun even on a demo you do learn a lot as yrs go by . Now I do have a nice real portfolio I manage, and I look at GBP and all that comes into my mind is first is go and look at monthly chart and secondly - 1. 40 could be coming shortly....!
It's a very headline driven market for now
However, let's not get carried away let me break it down for you.
Technically we are within the monthly - which I will go through my yr ahead outlook video of 2021. There are so many formations for GBP that reaches towards 1. 40 area, but we need to pass 1.36-1.37 areas first those are next resistance areas and the daily close we got above 1.35 technically we are BULLISH! But does this mean you just get in now? Well no, go to lower charts find a good entry point using price but I am now going to speak about fundamental impacts on Brexit. (Use your own trade plan)
Fundamentals: I know, I know for yrs we've been talking about this Brexit - Will it be over by 31st December or will we continue into 2021?- Sure I won't be working on Christmas day only day I am taking off but I will be looking at my desk looking to see updates, fishing out any information I can get - I would recommend you to even invest in a good squawk service head-lines will be coming out and the price of GBP the moves be interesting, keeping a good amount of stop I would recommend for this pair for now. I feel if we do get deal the euphoric energy will come in we should hit 1. 40 areas but then I do have other views where I feel at 1. 40 things could take a turn and if we don't get deal sure GBP will decline - Now, why 1. 40 Why and how will take a turn? - Well, wait for next week for my 2021 outlook tune in - I will be explaining further why!!
Also keep in mind if we do get from USA - that will increase GBP and other majors too. Lets see what congress does....!
If you are interested in the UK market - Check out my FTSE100 analysis post as well!
All the best,
New tier 4, Brexit and then dollar strength - Not something I would be fully all in on, personally 1.31 - 1.29 areas great support areas. Extension of Brexit deadline would be coming into pipeline as well, we do have till 31st December. BE AWARE - The market has had a great pull back, but like I say it doesn't mean you rush in - stick to your plan and check the correct price action.
I personally I have been in since 1.27 areas long, which is a longer term position I got placed- I have scaled out of positions in between as days/swing trades. I will be looking to re-build and scale in when everything in my plan gives me high conviction, this pull back is what is needed, everything was so over extended for example AUD etc.
All the best,