Monthly Chart
Daily Chart
Preference:
Long positions above 1.58 with targets 1.7300, 1.7800, 1.8140
Bought at 1.6660 S/L 1.5750 (910 pips),
T/P-1 1.7300 (640 pips), Risk 2:1
T/P-2 1.7800 (1140), Risk 1:1
T/P-3 1.8140 (1480 pips), Risk 1:2
Period of Time:
12 – 18 Months
Basis:
- Fundamental Idea – GBP looks to outperform Versus EUR and USD
- Upside breakout of an ascending triangle on Monthly chart
- Breakout of EMA200 on Monthly Charts. Price above EMA 200 on Daily and Weekly charts
- Uptrending channel on Daily chart
- An earlier rise in Bank Rate (H1 2015). RBS BoE Bank Rate forecast: first 25bp hike in Q3 2015, with Bank Rate at 1.0% at end-15 forecast horizon
- Expecting to attain at least a growth rate of 3.6% for 2014 and target 3.8% for Q1 2015 to the UK economy
- Deflation risk in Eurozone, that could increase the flow of investment to GBP as a more stable currency in Europe
- Aggressive monetary policies of Major Central Banks (FED, BOJ)
