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Pound Sterling at Support, Bounce Likely

As the Brexit vote polls are still open & push to about 50/50, the GBP/USD has fallen to long-term support with bullish divergence in place. Currency traders that don't mind stepping in when there is blood in streets might consider a long position around the 1.36 level with the appropriate stops using a 3:1 or better for a bounce target of 1.45. Unofficial trade idea. Weekly chart:

GBP/USD weekly June 23th

GBP/USD weekly June 23th

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Jun 23, 2016 11:00pm|Categories: Forex (Currencies), Unofficial Long Ideas|Tags: , |7 Comments

7 Comments

  1. Ruben June 23, 2016 11:05 pm at 11:05 pm

    Pound is approaching bellow 1.36. Bloomberg just mentioned that the rest of the numbers that will come in will not be enough to stay in. BREXIT is on.

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    • rsotc June 23, 2016 11:13 pm at 11:13 pm

      It just overshot by a bit but I think GBP 1.36 is a rare gift. They will step in to prop it up with both fists shortly. All the other CB’s that whinned about the risks of the Brexit will also help to support it in order to avoid their ponzi scheme collapsing if the GBP tanks. The current financial system is a powder key just waiting for a spark.. they can’t afford it.

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      • Ruben June 23, 2016 11:17 pm at 11:17 pm

        Yen is going crazy is well it’s almost at a par 100

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        • snp June 24, 2016 1:33 am at 1:33 am

          amazing

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  2. Art June 23, 2016 11:10 pm at 11:10 pm

    Equity shorts looking like they may pay in the AM.

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  3. covey June 24, 2016 12:03 am at 12:03 am

    It’s now below 1.332. This market is too wild for trading – stops can be run with nasty surprises. Play the technicals after the market has settled – lots of opportunities in the days/weeks/months to come.

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    • rsotc June 24, 2016 12:28 am at 12:28 am

      Exactly. Volatility, whether back & forth or a sharp reaction in either direction, was all but assured during the Brexit voting process. For all but the most aggressive & nimble traders, best to wait until the dust settles before re-engaging this market.

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