FxWirePro Call Review: Pound reaches interim targets as dollar slides

Earlier this year, in an article named, “FxWirePro: Pound bulls aiming for 1.44 against USD in medium term”, available at https://www.econotimes.com/FxWirePro-Pound-bulls-aiming-for-144-against-USD-in-medium-term-1085120 we suggested going long in the pound against the dollar. Here are key points from that piece,

“A weaker dollar, rate hike speculations over Bank of England (BoE) next move, a deal with the European Union have already pushed the British pound sterling to the highest level since June 2016, when the British referendum on EU membership pushed the pound from 1.5 against the USD to as low as 1.2 against the USD.

In our long-term forecast, we estimated that the pound would reach as low as parity against the dollar and we still stand by that prediction. However, our calculations suggest there is an opportunity on the buy side in the medium term. Our calculations suggest that the pound bulls are looking to push towards 1.44 against the USD and due to the excellent risk-reward ratio, we would like to urge our readers to get on board. There is a very high possibility that pound would reach this target as BoE is more likely to turn more hawkish in 2018.”

Hence, we urged our readers to long the GBP/USD at the then current rate of 1.354 and at dips with a target of 1.44 in the medium term and two interim targets at 1.38, and 1.402. We recommended a stop loss of 1.308 area.

Since then, as the dollar selloff intensified, the pound has reached two of our interim targets and that is much sooner than we anticipated and we expect the pound to reach our final target. However, long-term selling pressure is unlikely to ebb as long as the pound stays below 1.5 against the dollar.