“A no-deal, no-transition Brexit would be an economic shock for this economy ... and it would also send a signal globally about the prospects of refounding globalisation.”
- Mark Carney, Bank of England Governor
The United Kingdom is on a direct line to leave the European union on March 29 without a deal. This is unless Prime Minister May can convince the EU to amend the deal she agreed in November.
The uncertainty of a major political event such as Brexit is bound to have huge negative implications on not just the currency but the living standards of those within the UK. Carney mentions " a no-deal Brexit would hit living standards in Britain, at least in the short term".
This lines up exactly with the recent LogicStrategy™ results as the GBP dips swiftly towards a negative economic quantitative score.
On top of this the most recent reading of the ACSM shows how the GBP is getting significantly weaker with a cash flow of -1.14 and a negative score of -1.82, suggesting further weakness is to come of the GBP in the coming days. If you have some short positions in the GBP it could definitely be a long term opportunity as of the current market state.