BUYING BACK THE STERLING LONGER TERM INVESTMENT
Since the brexit release we saw the stock market plummit as much as 5% in a day reducing the possibilities of a rate increase-> reducing possibilties this pair could head more bearish
however : I am positive about the sterling , If indeed the economy weakens we see a slowdown wich could also lead to lower inflation -> increases the value of the currency.
Other scenario: Because of the cheap currency price foreign investors looking to invest in UK stocks increasing the demand for the sterling.
Technicals :
Strong Divergence between the RSI and price chart shows an underlying strenght
On the hourly there is a pennant pattern indicating a move to the upside wich makes a good entry
Price is at a strong support that has hold twice since 2001 and 2008 !
Target is not placed since were dealing with such a big time interval. Will depend on the Economic situation.
Stops set below the support range
however : I am positive about the sterling , If indeed the economy weakens we see a slowdown wich could also lead to lower inflation -> increases the value of the currency.
Other scenario: Because of the cheap currency price foreign investors looking to invest in UK stocks increasing the demand for the sterling.
Technicals :
Strong Divergence between the RSI and price chart shows an underlying strenght
On the hourly there is a pennant pattern indicating a move to the upside wich makes a good entry
Price is at a strong support that has hold twice since 2001 and 2008 !
Target is not placed since were dealing with such a big time interval. Will depend on the Economic situation.
Stops set below the support range