Frexit
Sell the High EURGBPWait for the pullback and sell the high of EURGBP as france goes into election and UK seems to have a clear road to the future.
Bearish EUR:
Election is still an uncertainty. A frexit is still possible
Bullish GBP:
1. Really undervalued from the real value calculated by BIS
2. Early election put conservative party at an unprecedented advantage in UK, and the PM Theresa May is able to clear the way for the uncertainty in terms of Brexit
Don't really want to play the cable because the FED is still going to do the rate hike. The balance sheet reduction is also on calendar right now. Also, if Trump really manages to make something happen in the US (Tax, healthcare, etc.), it will be bullish for USD. So playing with EURGBP would be the best way.
EURGBP Range Trade on Election UncertaintyEURGBP at the end of the week sitting at the bottom of a well tested range. For the next 10 days, markets are likely to be preoccupied with Euro uncertainty regarding the French elections, and so are unlikely to see a significant BreakOut until after the 23rd, and potentially the 7th of May.
I plan on buying at around .8445, with a first profit take at the top of range (.8825), and 2nd at (.9) should we see a bullish BO.
SL behind key support at .825
GL and Happy Easter!
Market pricing in Euro Rally before elections?Could Euro price in a rally before the French and Dutch elections? If Le Pen wins, Euro could occur some major damage.
