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Speculative Pound for the Holidays

By:
Yaron Mazor
Published: Dec 21, 2017, 12:01 UTC

The Pound has seen some pressure after a resignation in the Theresa May led government.

gbp

However, the British currency has shown stability early this morning and it could continue to attract buyers with a taste for short-term speculation during the holiday season.

Pound Holding onto Ground Early Thursday

The Pound may prove to be an interesting trade today and tomorrow. The British currency has held onto its gains made early this week and is near 1.3360 against the U.S Dollar.

GBP/USD 1H Chart
GBP/USD 1H Chart

However, internal political concerns have again hit Prime Minister Theresa May, as a closely allied minister was forced to resign yesterday in the wake on an investigation.

Higher Values as Political Battles Mount

The Pound has been able to attain higher values in the mid-term, and investors may continue to think it will show the ability to produce another climb even as political battles rage.

GBP/USD 4H Chart
GBP/USD 4H Chart

Short term traders need to take into consideration trading volumes will become tricky today and tomorrow, as volumes thin before the holiday season comes into force.

Speculative Resistance in Focus for Pound Traders

Resistance around the 1.3400 level for the Pound against the U.S Dollar is within sight and speculators may be anticipating a test of these heights.

Traders should use risk management when placing trades before Christmas to ensure against sudden spikes, but they may want to be part of the perceived strength the Pound has been displaying.

GBP/USD Daily Chart
GBP/USD Daily Chart

In the short term, we believe the Pound may be positive. In the mid-term and long-term, we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.

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