Brexit – Implications For GBP And What Trading Position To Take
Posted on June 20, 2016 by Hemal
The one thing we do know is if we do Brexit there is going to be economic uncertainty and potential volatility in the short term due to a reduced risk appetite.
GBPUSD is now trading at its lowest level in 7 years and we have even seen it step below the 1.4000 level and since January, we have seen GBPUSD in a range on the daily constantly ping-ponging as each EU Poll result is being released.
Goldmans and Citi et al are planning to bring in Traders on night shifts to deal with the upcoming chaos.
Personally, I don't like uncertainty. I like predictable, clear and conservative trade setups. Not stab in the dark because right here right now it's anyone's guess which way this is going to go. Anxiety is rife and that doesn't bode well for trade setups. So I for one will be taking the position of not being in a position. Sitting on the sidelines is a position and Capital preservation is key as a trader. My advice is to play the long-game and don’t get dragged into the thought process of making massive gains as the tornado tumbles through the markets next week.
Hemal Panyda - Founder: Alpha Trading Floor