Gold Market Wire
News, analysis and commentary for gold traders and investors
Sterling Sets up for The Slide
March 23, 2021 - (Gold Market Wire) - It's not that often you see a set-up develop that looks like an open goal with the goalie dead and the ball two inches from the line - merely waiting for the tap in to score...but at GMW, we feel we found it: Selling Sterling (British Pounds/symbol:GBP) against the US Dollar. The set-up is simply too good to resist and right now has all the hallmarks of a Sterling collapse at its very beginning. Leaving aside the willful destruction of the UK economy, and the continuation of the long post-WWII slide of the pound, which has had moments of reprieve, for sure, but still has the long-term historical trend at its back; the state of the UK national debt is now simply so encumbering we feel that Sterling is getting ready for a "dirt nap" of historic proportions. It is time to selling Sterling. The chart agrees - wholeheartedly.
It's rare we say this, but this is one to lean into with leverage... but not the type you use for a trading position. This is the type of 2x-3x, long term leverage that should be taken as a core position, with probably a couple of years to run.