Yesterday's pound growth is a rehearsal before a big moveYesterday's growth of the pound on all fronts (against the dollar increased by 150 points in less than half an hour) is a rehearsal before a big movement. Traders come out of the summer hibernation and begin to knead muscles.
We have already noted that this fall, pound pairs will constantly "explode". The fate of Brexit, and therefore of the pound, is solved practically in real time.
Therefore, whenever such things happen on the pound charts (see the figure above), with a high degree of probability this means news from the Brexit fields.
Yesterday the Bloomberg news agency published information that Germany and Great Britain had made a breakthrough in the negotiation process. Germany abandoned a few requirements to the UK, greatly easing the latter process of bidding. And since Germany is a key EU country (especially in terms of economy and filling the budget of the European Union), this kind of news should be taken as very positive signals for the pound.
Recall, the Brexit deal should be closed this fall. The current prices of the pound, in fact, reflect the option of leaving the UK from the EU without a deal. Accordingly, if the deal is signed, the pound will have a very wide space for growth. According to our estimates, we are talking about the marks of 1.41-1.43. And this is more than 1000 (!) Items, if you buy from current prices. Since we are confident of a positive outcome of the talks, we believe the purchase of the pound on all fronts is one of the best mid-term deals in the currency market this fall.
