What Profits Brexit Can Give Us Now?

Hello, friend!

Today I thought we could analyze the currency of the country, which is going to have significant changes: the United Kingdom and particularly its GB Pound. Many traders, invest funds and central banks prepare for Brexit, and now their eyes are chained to the processes that currently happen in the UK.

I think that everyone will agree when I say that it is a quite attractive opportunity to make some money. However, on the other hand, everyone understands that risks are also relatively high. Now, before the Brexit process, I want to review the situation and check how can we convert it to profits.

At this moment, some concerned people have already tried to count a fair GBP price and forecast the upcoming event. However, it looks more like building a dam on a river: all money accumulate in the hands of traders, like water before a dam. And this money surely will go to the market later. However, nothing is left in the lower river - there is no water because it is before the dam. That's what happens with the GBP/USD now, and it means that the whole trend will be sideways.

So, we can assume that there will be local lows and highs on the market, and we need to understand when will be these new lows and high. At first, let's check how did the price behave in the last month.

Picture 1. Price chart of the GBP/USD for 24.12.2018 - 28.01.2019

As we can see in picture 1, the GBP/USD instrument definitely had turn points where the price actively changed its direction. Such a situation is lovely for us and due to the expectations of Brexit, we may not worry about significant market changes. It reduces strategy risks. However, to prevent turn points precisely, let's check the index of big traders.

Picture 2. Price chart of the Index of big traders of the GBP/USD for 24.12.2018 - 28.01.2019

As we can see in picture 2, there was a very significant shift in the positions of big traders, and as a result, we can expect the upward movement to the 1,145 in the nearest future and also even a possible target of 1,195.

So, finally, due to all the reasons provided above we can assume that the best strategy now will be to increase the number of "UPPER" trades.