GBPUSD rallied post May's commons defeat
The GBPUSD rallied post May's commons defeat which shouldn't have really been a massive surprise given the potential outcomes from a defeat. You can read my posts on this running up to the event here. Here is a quick summary:
All that is to say this - I see a potential for upside to the GBP from here. Look at the options -
- May loses the vote - Potentially opens the door for Corbyn and second referendum - GBP appreciates.
- May wins the vote - GBP appreciates
- May postpones the vote by extending Article 50 - GBP appreciates.
So, what now? The GBPUSD has hit my target and the level overhead is a big one. The 200 EMA and the R2 pivot point. See chart below:
The trades that makes sense to me iare
1. go short today with stops above 200EMA
2. Wait and see how May's plan B goes down next week and...
3. ...consider a long from the R1 and 100 EMA level (blue line).
