FxWirePro long term outlook: Go long the FTSE100, short the sterling

Looking for a longer term position, then you can short the sterling against the dollar as we suggested in our previous post,

“We expect sterling to recover and try to test $1.4 per dollar area, so it is advised to sell at the current level and at rallies targeting parity at least and few hundred pips more with a stop loss around 1.5 area. The pound is currently trading at 1.346 against the dollar.” available here, http://www.econotimes.com/FxWirePro-Sterling-likely-to-drop-below-parity-against-dollar-229769

A better position would be to go long the FTSE100 along with it. Despite the political turmoil, we expect the fiscal stimulus provided by the government in terms of taxes in addition to additional spending, coupled with ample liquidity from the Bank of England (BoE) will benefit the equities.

Weaker sterling will also provide a boost to export earnings, both for the goods, and the services. Hence, going long in FTSE100 is highly recommended.

Trade idea:

FTSE100 is currently trading at 6550 and we expect the index to first reach 7100 area and then move further north to 7500 area and finally to 8100 area.