What is going to become of the British Pound Sterling? This article offers some very interesting Pound Sterling prediction after Brexit that you are not going to read on other articles.
This article offers genuine reasons for why the pound strengthens, and even offers a fact-based prediction after Brexit regarding how the British pound will react over the coming years. Beware all readers, this is not the sort of information you will find in the mainstream media news.
The Stuff You Didn’t Know Regarding British Pound Manipulation
Whether you believe this or not is up to you but read it through and see if anything strikes as subtly familiar, almost as if it had been happening under your very nose.
The UK economy has been doing rampantly well since 2012, and it was mostly due to the Conservative government led by David Cameron.
Who became Prime Minister on 11 May 2010, along with help from a slight let-up on fuel prices after the Bush-era wars, and thanks to the Chinese continuing to cripple its own currency so that it can make more money from overseas sales.
However, with fuel prices rising, and with Russia, China and India ramping up their economies, the UK needed some help. Then, along came Brexit, and investors around the country discovered they could shake confidence in the process and lower Sterling GBP prices.
Since the vote for Brexit, the British pound has been struggling, and every time it starts to recover, another set of news stories break that scares British pound back down again.
The UK could once-again sell its secondary and tertiary products abroad for bigger profits, and the UK economy continued to flourish.
Then came a humble hero named Donald Trump who reinvigorated the US economy, and suddenly the GBP/USD took off as people in the UK started making much more money from the USA.
Brexit scare stories helped keep the British pound low, while companies, businesses and people in the US spent money with British companies simply because people/companies had more money to throw around.
British Pound prediction after Brexit!
All good times must come to an end and as it’s appeared that Brexit was definitely going to take place, thanks to the upper-class bumbler (albeit well-meaning) Boris, the UK saw its first shrink for 7 years.
Brexit could no longer be used to strangle the price of the British pound, and even though the price was still riding low at that point, investors and economists were pulling back from British interests because they had their eye on the future.
Your first question is probably, “Will the pound drop after Brexit?” The answer is, a temporary dip in the British pound always occurs after newsworthy events, simply because less experienced investors tend to sell up quickly and it damages the pound live exchange rate.
However, contrary to what you read in the news, the British pound is going to go up over the next few years.
The USD/GBP currency pair is going to remain popular thanks to the reinvigorated US economy, and because the British pound has been undergoing pound weakening exercises for years, and now it is like an elastic band that is going to snap back into position and restore the British pound to what it should have been at this point.
That is Not What It Says in the News
The news has an agenda. They need to support Europe, which means they give bleak predictions for the UK and great predictions for the EU. Yet, investors see the opposite, and so they act accordingly.
They see countries and businesses swarming around the UK wanting to make deals, while they see Europe running off to strike quick deals with Singapore and Vietnam with a hope of keeping its investors while it sees support from developed-country businesses/investors drop off.
What Happens in 2020?
There are many powerful and savvy investors who know everything you just read, and they are going to pick their investments quickly while the havoc from Brexit still offers low prices, and while the threat of a poor quality democrat candidate winning the US election still scares newer and safety-first investors.
Savvy FOREX investors will also understand the outlook and this exchange rate prediction too.
So it will go like this: Savvy and experienced investors will invest in UK, US, Indian, Russian, Saudi Arabian, the Emirates, South Korea, Canadian and Australian investments, with a lot of diversifying in parts of Asia and especially in China.
They are also going to invest in the majors like GBP, USD, and the other associated major pairs as per the list of countries in this paragraph.
Speaking of countries to invest in
Do not bother with GBP JPY news. Stay out of Japan until it starts taking a staunch conservative economic view and start cutting taxes because they are close to losing their safe haven status (remember you read it here first).
They are heading for a recession (you read that here first too), and they are trying to pass off their troubles as a temporary Coronavirus problem. Their taxes are choking the Japanese people and are scaring away investors, and you need to stay away too.
People who do not know the investor secrets* that are listed in this article are going to wait to see if the UK recovers nicely, which it will, but it will recover slowly.
The people who are waiting will serve as the fuel that speeds up the bull run before the elastic band snaps back into placed and we start seeing a British pound chart that is more in line with what it should have been by this stage.
*They are not secrets, but they are also not widely known. You need experience as an investor in business and FOREX to correctly interpret what you see in the markets and in the news. Plus, it doesn’t hurt to work for one of the investment companies that release GBP news either.
Best Hours To Trade the British Pound
Some say that the best hours to trade the British pound is Monday morning when the stock market opens because that is when people rush to sell their investments after a weekend of news.
And, some think you should trade currencies like the British Pound all day because the FOREX market is always open.
Take note, neither of these is true. Time and experience will teach you that the most traded currencies are GBP and USD and the best time to trade is when the UK and US markets are open, which means between 08:00 and 10:00 GMT and between 12:00 and 15:00 GMT.
This is when the biggest moves happen, and when the most profit is to be had.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.