Not everyone can understand the way the pound moves

If you can come to an agreement with yourself, it’s called “egoism”, if you can’t - it’s schizophrenia. The British Parliament has looked like a madhouse for a few past weeks: it pushed the country to recession and Theresa May - to Brussels. To knock out some preferences from the EU which the latter wasn’t willing to give.

However, May didn’t have any choice - she was between the devil and the deep sea. London dreams of well-being. Without Brussels. Brussels doesn’t understand why London should be offered a special place in  hell.  And what should do the British PM that has to run over from one opponent to another under such conditions? When it’s too early for retirement and too late for walking the streets.

Finally, egoism defeated schizophrenia and parliamentarians first voted against no-deal Brexit and then for delaying Brexit beyond 29 March. In other words, they used Article 50 of the Lisbon Treaty and delayed the uncertainty that had been hovering over the kingdom.

The Britons don’t want to look into the future: why should they get upset once more? Eventually, all may end up in another Brexit vote. And if many dared not say “no” to Brexit in 2016, the situation may end up in a completely different way 3 years later. Actually, it’s easy to learn to say “no”. Just remember yourself and your partner in the registry office. 

Don’t be afraid of failing, be afraid of not trying. The pound decided to turn a blind eye to economy and react solely to parliamentary debates. Success! The pound liked it. It doesn’t matter that GDP is growing as little as 0.2% and the Bank of England will give up an idea of a repo rate hike even under arranged Brexit. The political scene does matter! Britain is growing poorer, but hungry stomach is good for dreaming, not for thinking.

 London will become the world’s financial centre without the EU!

We’ll begin a new life!

Well, a divorce with the EU is the case when dreams don’t survive in reality. And, in the end, if you want to double your money, just put it in front of a mirror. 

Anyway, the most important thing in life is not to lose heart. A truly hopeless situation is when someone is encircled in chalk. The rest of situations can be dealt with. Stagnant GDP dynamics and the political swamp Britain is plunging to can be dealt with as well. The British citizens condemned themselves to uncertainty and their country reminds of a new-born animal: 

- What a cute kitten? Is it a boy or a girl? 

- It will decide itself when it’s grown up.

The choice of investors working with the pound doesn’t look less difficult. On the one hand, London made a step away from no-deal Brexit and GBP/USD isn’t currently expected to fall to 1.15.  On the other hand, uncertainty is still there, economy cannot recover, and the pound is growing rapidly. It all reminds of female logic. And female logic is meant for driving men crazy...

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Price chart of GBPUSD in real time mode

Pound and female logic

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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