The low prices of GBP allow for short-term profits

03.12.2018 / 20:35

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The uncertainty surrounding Brexit weighs on the pounds and he is down on most of his crosses. This negative trend pushed it to a multiple bottom against the Bulgarian lev, with the current levels providing a good justification for buying sterling for short-term profit.

The price is currently in horizontal and diagonal support, with 61.8% of Fibonacci on the last upward movement - a strong level that, as you can see, manages to withstand the vendor test and tensions in the UK parliament.

I expect retention of the price zone and a new rise in pounds, with the target of this deal being around 2.2170.

The long-term outlook for the currency coincides with my opinion for a longer period - negative movements for the pound. But in the short term things are different. The medium-term trend is retaining a longe, as the price is very strong.

Break below this zone will send the price down, expecting a bottom test at 2.1737.

Trader Aleksandar Kumanov

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The low prices of GBP allow for short-term profits

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