You are here: Home > articles > Forex > The time has come for active trading in the pound amid volatility
The time has come for active trading in the pound amid volatility
November 7, 2018 4:25 pmVideo
Latest News
- Trading Signals for EUR/USD for May 3-5, 2024: sell below 1.0803 (overbought – 5/8 Murray) May 3, 2024
- Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA – 200 EMA) May 3, 2024
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
The pound rally against the backdrop of growing optimism regarding Brexit is so confident that it can ignore some serious risks.
There are high chances that the appreciation will be further developed if British lawmakers sign an agreement, while the reason for a recession may be the refusal of parliament to approve the deal. Then Prime Minister Theresa May will have to return to the negotiating table with the EU, perhaps, to hold a second referendum or even a general election.
What will happen next? Any of these scenarios can trigger a decrease in the pound, which makes it attractive for holders of short positions. In general, the chances that the deal will be approved by the House of Commons are not so much. So, there are very good chances for a general election in the next six months.
This month, the pound added about 3 percent against the dollar and more than 1 percent against the euro. The majority of MPs should vote for the deal, and there are 650 people. This can be a problem because May does not have a majority vote. In addition, the opposition Labor Party said it would not vote for the deal.
So far, I recommend selling the pound on the rise and buying on the downturns, good, the current volatility can significantly increase the number of such transactions. Options investors expect the pound to remain volatile.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: