This trade mitigates some of the nerve-wracking volatility that’s everywhere right now. UK growth is slow but no slower than the continent and there is no crisis.
Technically, the break below 0.8537 is a sell signal and now we’re seeing some sellers remorse. I like a sell order on another break of 0.8535 and a stop at today’s high, adding on a break of 0.8500 and letting it run to 0.8300 or lower.
The chief risk I see is from UK banks as some negative headlines could hit sterling hard.
