Brexit odds are rising: GBP/USD is crashing, things are looking cruel as more votes for leave are gaining ground.
The initial big fall came from Sunderland after a push from Newcastle. Since then, the pound found some stability but fresh results push things lower.
The low so far has been under 1.40: 1.3998 to be precise. Update: from here we had a fall to a low of 1.3296.
After the big fall, cable bounced back up to 1.42 but does not seem to provide a more meaningful momentum. Things are quite wild here with a total fall of 4.4% that is not seen every day.
So, to answer the question on top: if you are confident in Brexit, perhpas it is wise to do at least one of the following:
- Trade with extremely limited leverage: Your broker will do that anyway and it’s good advice in such crazy situations.
- Wide stops: Bounces are crazy are tou don’t want to lose out on an odd report from a small area.
- Wait for a bounce: the 1.45 handle was an area the pair settled for some time. Update: Bounces above 1.40 could be opportunities. Another update: the post crisis low of 1.35 could be another level to short heading to the new low of 1.3296 and perhaps even lower.
Here is the chart that may already be antiquated: