Its definitely been a rocky season for the global markets in the last couple weeks with all sorts driving the market sell off having the impact of the Covid 19 on top of the list. The Cable is currently hovering near 5month low handle and we can soon expect to see a short term surge in price and a high demand for the Pound as market will likely react around this zone to oversold levels despite the economic crisis. So many forces are emerging at this juncture as nearly every item and commodity is cheaper to acquire during these times. The Bank of England base rate or commonly known as interest rate been slashed by 0.5percent to 0.25percent as a preventive measure to soften institutional and consumers finances, the lowest rate since 2016 referendum just makes borrowing and interest payments cheaper amongst other benefits.
However, I will be looking for my short term LONG short around the 6months low and any break below this zone is a completely different ball game for the British economy.
However, I will be looking for my short term LONG short around the 6months low and any break below this zone is a completely different ball game for the British economy.