This is a huge problem for most my colleagues in UK, they figure that DUP means Ireland.
Truth is that Ireland doesn’t want a rope, it’s a noose, not a life line, our outlook is worldwide, has been, thus the GDP.
I admire May because finally she has stood up to bullying, it takes a while but bullies need to be stood up to. She made a huge mistake by trying to pay the bully off with £1bn, thankfully the PM didn’t pay them up front, she kept half.
What next? - the bully will huff and puff, that’s what they do, hopefully the new Iron Lady will stick to her guns.
Cut us adrift?
Sometime come over to our little island, we have a saying: “cead mile failte”.
Ok, apologies for the side track, I wanted to focus on GBP price and in particular that double top that I felt was of importance back 2 weeks ago.
Back 3 weeks (Oct 27) I suggested maybe ease up on Gbp sells, it so happened that Oct 30 was a turning point (have mentioned EOM before)
So what about the DT? - well that formed at the end of the following week - the market seemed to be poised for more selling and so guys sold.
Never take a position on a Friday signal, it’s often a spoof.
Of course the market (the algos both fa and ta) took note of the DT (my reference “will be watched”), it became the formation of a well known pattern, the infamous head and shoulders.
Check the yellow line on the chart below the Iron Lady - TA and FA working in perfect harmony.
One other little point of learning - can you predict these moves?
Answer is no, but it’s possible to learn how to imagine them.
Always an example - look again at the Iron Lady chart and notice the grey line - where price is right now.
Is it possible to see that the market is waiting, almost undecided, the news algos are in blinking mode, likely Tue/Wed for the next move, I suspect reasonably positive Gbp, they have their eyes focused on a certain lady made of Iron
Edit: Blinking mode - Msdos on a computer has a cursor, looks like an underscore, sits blinking waiting on input.
Going to give little updates on the Brexit scenario, the focus will be on the trading aspect and not the politics.
On this thread Brexit Parliament vote I had suggested that last Friday was the day to take up a sell position on GBP.
I will explain the reasoning, how it is possible to anticipate news effect on price one week ahead.
Learners will often read that the fundamentals or ‘news’ is always already priced, if that were so then I couldn’t have reasoned that there would be a sizeable move early this week.
Early in the Brexit process the UK govt wanted to have control over all decisions, this was rejected by a majority of lawmakers and it was agreed that Parliament would have what was termed a “meaningful vote” on any proposed Brexit agreement.
The UK govt reached an agreement with the EU27, when announced it caused some GBP buying, although the market was aware of the meaningful vote yet to come.
Market sense was that the EU would ratify the agreement, which it did, but as time went on it was clear that parliament would not, the numbers simply did not stack.
The vote was set for today and the market was poised for the inevitable outcome.
The only unknown variable last week was NFP and it’s effect on the USD side of cable, when that would become clear then GBP would be the focus.
The UK govt pulled the pin on the vote yesterday so the price fall that was anticipated for today happened 24 hours early.
There was a heightened risk of this happening therefore my thinking on taking a position on Friday and holding over the weekend rather than waiting until Monday.
That’s really it, all rather mundane.
What’s going to happen right now?
Not really a lot in the immediate future - the risk of a change of PM, or rather an election to attempt a PM change has increased.
Such a scenario would be a GBP sell, then the voting process would cause some volatility, but that’s for another day.
That was 2hrs ago - one hour ago and ITV journalist, Robt Peston reporting that leak from Tory party says 48 letters received regarding PM no confidence vote.
Chances are this being true are quite high - watch out tomorrow morning.
Vote will happen between 6pm and 8pm today, Wednesday GMT - the market focus will be whether the PM survives, rules are that she has to win by at least one vote, reality is that the margin needs to be higher.
Steve Eisman is short 3 UK banks based on the premise of a no deal and/or a Labour Govt - there is a reasonable chance that he will have added to his positions.
Results will be announced later this evening, difficult to tell direction right now so many pound traders will just wait.
Oh - how come I posted about the possibility of leadership ahead of the leak?
Inside information - i.e. information inside my head, I remembered the last confidence vote on a sitting PM - the issue was the EU, the PM was female and the party waited until she was out of the country.
Price was at 2545 then, now at 2610 - more likely to consolidate around this level.
Still looks like a win for PM - the numbers will give some clarity on the task of the ‘meaningful vote’ question, also possible that this will stall the selling of late on GBP.
Oh - forgot about that - 2680 became a pill too bitter to swallow for buyers - see how price managed 2685 and baulked, then down more than 100 pips - that post was Thursday morning - there were two more efforts at 2680, then yesterday the drop.
No takers (buyers) for the offer methinks - that’s levels and FA .
What about nest week? - sell the highs perhaps - although there are rumours afoot in Westminster and as always - don’t buy the rumour, wait for the fact.
Quick update - pound traders maybe caught on the hop today, meant to post earlier - the reason for GBP buying was that Tory Party MEP’s were called to UK PM’s HQ (no.10) today.
The market suspects that the reason is to inform them that they will be seeking re-election this coming May to the EU parliament even though that the UK will have left (apparently) by March 29th.
Classic case of buying a rumour, the weekend will add more clarity, lol - that’s a word very scarce in the Brexit debate
- David Davis for preference - Boris - as second choice (assuming Nigel Farage is a non-starter 
)