fxsurprise8のブログ

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Cable to Rally Post-Brexit

I expect Cable to rally in the aftermath of the start of Brexit negotiations. First reason for this is the fact that the worst is now behind the UK. Markets have pummelled the Pound in the ground already discounted a lot of negative scenarios. Thus a positive surprise could led to large GBP rally.
The second reason is our first chart above. Notice the three bottoms pattern. Some may see an irregular Head and Shoulders formation. In any case it looks like the bears have checked out and the bulls…
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Cable to Clawback Some Brexit Losses

I expect Cable to clawback some of the post-Brexit losses. As you probably know unless you lived under a rock, past week the UK voted to leave the EU. This crashed the Pound from over 1.5000 to just 1.3291 right now. A combination of uncertainty and increased odds for extra QE by the BOE lead to severe losses. Few days ago a low point of 1.3116 was hit. I have a reason to believe this is the lowest we'll get, at least this summer.
For one, look at the daily chart below. The Stochastic Oscillator…
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Post-Brexit Volatility to Die Down

The EUR/GBP had an uncharacteristically volatile week. Prices spiked over 600 pips on Friday after the UK voted to leave the European Union. Since then however calmer heads prevailed and we're seeing the pair revert to its boring self.
I'm betting on no major changes in this pair. Fundamentally the Brexit will hurt both economies short-term, partially by the separation and confidence shock and partially by renewed Central Bank easing on both sides of the Channel. But more important, on a technic…
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More Range for the EUR/GBP

The EUR/GBP mostly stayed range-bound in October, although not without some volatile moves. First we rallied over 100 pips to a multi-month high of 0.7492. But from here we fell by almost 400 pips to a low of 0.7122. We are currently quoted at 0.7131. Confused? You should be.
But the picture isn't clearer even if we look further out. As we can see on the weekly chart below, the EUR/GBP has been range-bound for most of this year. I'm betting on this continuing to be the case and no major changes …
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