Day 370: Pound can’t catch a break

Profit: $9.06 Total: $1,301.05

The pound had another bear day due to Carney rate cut announcement. Mark Joseph Carney, the Governor of the BoE, told the markets that a monetary policy stimulus is likely needed over the summer. So far, the Pound can’t catch a break and has even failed to close the Sunday gap for GBP/USD. Any shorts were killed off by a steep drop and price visited the low’s made by the Brexit vote. Boris Johnson also said he was not running for PM which leaves Theresa May as a likely candidate. She is very adamant on leaving the EU zone and disagrees on a  2nd referendum which gives pound bulls no hope.

I took advantage of Carney’s rate cut announcement and shorted the GBP/USD and GBP/JPY. I wasn’t too aggressive due to weird volatility when the pound found supports pretty early on. Regardless, the dovish statement drove the GBP/USD over 200 pips below and it looks like it has a potential to make lower lows from the Brexit vote. Perhaps George Soros was right when he said the pound would see a 20% loss.

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