If you get a chance, give a tip of the nod to Ryan Littlestone for the legendary all-nighter he pulled to cover the referendum (or let all the pips he made be its own reward).
Ryan is the real deal and traded the referendum like a champion while sharing every bit of his internal monologue here.
He was long cable since 1.6060 and made a killing and wrote about it all here. The day before the referendum, here’s what he wrote in his preview, which was the best preview anywhere.
For a “No” vote we will see a pop in the pound but I’m concerned about how much. If we see 150-200 pips I think that will be a stretch, but let’s not underestimate the fact that far more people outside of the UK see this as a bigger deal than those of us within the UK, and so may cause a big reaction. Again, if you are long going into the result and we get a big pop then it may make sense to trail a stop 50-100 pips behind the price. It won’t take long for the Scottish factor to wash out of the pound and we’ll be back to the economic fundamentals. Remember that we’re still in this H2 slowdown and have a slightly more hawkish Fed now.
I highlighted some levels before the FOMC yesterday and they still stand today (there’s levels for other majors too).
Most notably is the area from 1.6530 to the 50.0 fib of the Sep swing at 1.6620 and 200 mma at 1.6629. These will be levels I’ll be watching closely for signs of fatigue in any upward move.
The pop was 150 pips and a trailing stop was a brilliant strategy and the top was 1.6525 — five pips from the level he noted.
