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Jan 23rd, 2018: Pound Returns to Pre-Brexit Levels

Morning Report: 07.00 London

This morning, the British pound remains strong after the GBP/USD briefly broke the 1.4000 level, its highest level since the Brexit vote shock. The pound is the strongest performer for the week so far, with the GBP/USD’s gains being helped by an accommodative dollar. The EUR/GBP slumped yesterday as the pair heads to test the December lows.

The euro itself is mixed by contrast, failing to build on last week’s momentum.

The Australian dollar is falling behind the pace this morning, while the NZD/USD is just about keeping its head above water and extending its winning run.

The yen is weaker, with the USD/JPY rising after this morning’s uneventful BOJ meeting.

Coming up today

Coming up today, we have UK public sector net borrowing at 09.30.

German ZEW economic sentiment follows at 10.00.

Trade Idea

Now that the GBP/USD has breached the 1.4000 level, we could see some back and forth over the coming days. In the medium term though, the trend remains firm, pointing to further upside.

Jan 23rd, 2018: Pound Returns to Pre-Brexit Levels

A good way to play this is a HIGHER trade predicting that the GBP/USD will close above 1.4100 in 35 days for a potential return of 157%.

Jan 23rd, 2018: Pound Returns to Pre-Brexit Levels