Brexit odds are rising: GBP/USD is crashing, things are looking cruel as more votes for leave are gaining ground.
The initial big fall came from Sunderland after a push from Newcastle. Since then, the pound found some stability but fresh results push things lower.
Update: UK leaves the EU – it is official – expect more crashes
The low so far has been under 1.40: 1.3998 to be precise. Update: from here we had a fall to a low of 1.3296.
After the big fall, cable bounced back up to 1.42 but does not seem to provide a more meaningful momentum. Things are quite wild here with a total fall of 4.4% that is not seen every day.
So, to answer the question on top: if you are confident in Brexit, perhpas it is wise to do at least one of the following:
- Trade with extremely limited leverage: Your broker will do that anyway and it’s good advice in such crazy situations.
- Wide stops: Bounces are crazy are tou don’t want to lose out on an odd report from a small area.
- Wait for a bounce: the 1.45 handle was an area the pair settled for some time. Update: Bounces above 1.40 could be opportunities. Another update: the post crisis low of 1.35 could be another level to short heading to the new low of 1.3296 and perhaps even lower.
Follow: EU Referendum Real Results Live Blog
Here is the chart that may already be antiquated:
