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Could this be Sterling's Waterloo?

Paul Chakaduka


GBP/USD Technical Take

"Could this be Sterling's Waterloo?"



  • ENTRY (Sell): 1.32
  • STOP: 1.328
  • TARGET PRICE 1: 1.3


In the last few months I have been advocating to sell GBPUSD if it has found any strength.  In the last month, the mighty Pound has advanced significantly against the $USD not due to the strength of the Pound but merely from $USD weakness.  This week is going to be cracker for all Sterling traders as the “geysers “on Westminster seem to have spared Teresa May some blushes in the short term, however as I have said before the fundamentals in the UK do not warrant a firmer Pound.  The UK Economy has been battered in the last 18 months and seems to be on the receiving end from its European cousins. The Brexit deal which seems to be going nowhere will determine the future of the Pound in the short to medium term.  There is no cheap divorce and the UK will learn that lesson very quickly.

My trade is to go short GBPUSD, some currency fundi’s out there might feel you will get more bang for your buck by going long EURGBP, that could be an alternative trade.  Stay short Sterling cause “fish and chips” will be a bit more expensive this week.

economic calendar.gif

Source: Bloomberg 2017



 Source: Bloomberg 2017


Fell free to contact our desk if you want to discuss the trade or require assistance: +27 87 940 6108

Wishing you profitable trading.


Paul Chakaduka | Trading Specialist at GT247.com

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.

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