To all, we must not forget the reason why the pound is at the level it is at the moment. Mr carney said something about interest rates that he wasn't authorised to do and now he has been made to back track on those comments because the pound is too high and the effect of such a strong pound could start to impact on exports.
Where we are now has nothing to do with technical analysis. Thus I will continue to hold shorts and I will not close any until the natural level of the pound is reached which is @1.6850. Anyone that is long at these levels should just consider it a short term trade. The fundamentals do not support 1.7xx.
The new Zealand policy makers had to intervene to stop nzd appreciating so much because the fundamentals do not support its current levels, which is what we are seeing in the pound. I am also holding long term short on nzdusd until it gets back to its natural level of 0.8450.
Just remember "in trading both the Turtle and the Hare wins"
Where we are now has nothing to do with technical analysis. Thus I will continue to hold shorts and I will not close any until the natural level of the pound is reached which is @1.6850. Anyone that is long at these levels should just consider it a short term trade. The fundamentals do not support 1.7xx.
The new Zealand policy makers had to intervene to stop nzd appreciating so much because the fundamentals do not support its current levels, which is what we are seeing in the pound. I am also holding long term short on nzdusd until it gets back to its natural level of 0.8450.
Just remember "in trading both the Turtle and the Hare wins"
Peace & Pips