The Pound has been whipsawing short term traders. After gaining before going into the weekend, the Pound has suffered a downturn this morning on the developing news surrounding Prime Minister Theresa May and a potential revolt among the Tories she leads.
Pound Traders Getting Whipsawed
The Pound has seen a whirlwind of whipsaw trading over the past week. The British currency is testing lows this morning and is near 1.3050 against the U.S Dollar.The Pound has been put under pressure this morning upon growing concerns among investors that Prime Minister Theresa May’s grasp on power is slipping. While investors may not care if May is forced from her job in the near term, it is the uncertainty they dislike.
A Tranquil Mid-Term for the Pound
A look at the Pound via a mid-term chart shows a more tranquil view of its trading however, with what could be considered normal range cycles.The British currency appears to have strong support near 1.29 against the U.S Dollar, but traders who have bought the Pound may not be willing to hold on if those type of low water marks are seen.
Betting on a Reversal of Fortune
The big trading question is how speculators will react in the near term for the Pound.
News of a deterioration in Prime Minister May’s leadership is not a surprise. While the Pound appears weak – will traders bet on an upside reversal in the near term, based on their belief the British currency will recover from negative sentiment?In the short term, we believe the Pound may be positive. Mid-term and Long-term we are unbiased.