Being right or wrong doesn’t matter as long as your portfolio is able to generate positive cash flows as per George Soros.
But this time the billionaire and legendary investor went wrong, whose 1992 flutter against the British currency made hedge fund history, has not repeated the history, the bet ahead of sterling’s record tumble on Friday went in vein.
Whereas, FxWirePro had consistently been anticipating and advocating hedging bearish risks of the sterling crosses.
Below are a few samples where we’ve advised to stay short in GBPUSD, the importers and exporters in the long-term who have deployed these hedging strategies, by now they would have saved in the steep tumble of GBPUSD trend.
Please follow the below link for our previous articles:
For now, although some momentary gains are expected, it wouldn’t be deemed them as long opportunities but a speculation.
We would still foresee some more weakness leftover in this pair as a result post-referendum effects, even though outcomes are out, it takes minimum 1 year to settle down the formalities before actual exit takes place.
As a result, we recommend a GBP/USD 1-3M risk reversals that signify more bearish risks in this pair i/o 1Y as a generic hedge for Brexit risk and stay calm with bearish hedging vehicles as advocated before.
The ideal entry point is not ideal given the near doubling of the risk reversal since early October, but the bias is for further widening of the skew in slightly OTM strikes on persistent-bleed demand for post event protection.


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