Burning forecast 10/20/2017

Burning forecast 10/20/2017

The crisis of Catalonia played against the pound - but the trend has not been reversed.

We continue to buy the GBPUSD pair.

On Thursday, the rate of the pound along with the euro came under selling pressure.

I believe that this is due not only because of the U.K.'s difficult negotiations with the EU regarding Brexit, but also to the crisis of Catalonia-Spain.

How can the crisis in Spain prevent the pound's growth, provided that Britain withdraws from the EU and particularly does not enter the euro area?

I think this is the case when it comes to banks of Britain - and in Spanish government bonds. In the event of a worst development of the crisis - the release of Catalonia from Spain without an agreement - a collapse is inevitable in the government bonds market of Spain - and the crisis of the world's largest banks. This weakened the euro and pound.

Nevertheless, we are buying the pound at a decline down to 1.3050.

Cancellation of purchases - a consolidation of the GBPUSD pair below 1.2980.


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