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2017 Brexit Trade opportunities you should know
2017 Brexit Trade opportunities you should know

Britain voted to exit the European Union on June 24th 2016, which caused widespread chaos in the global markets. Currently, early Brexit talks are on the discussion table. Having this in mind, what are the 2017 Brexit trade opportunities that traders have to know?

17 March, AtoZForex  One of the notable impacts of Brexit was the significant downfall of the pound from $1.49 to its current value of $1.24. It is the lowest value that pound traded since 1985. When Britain was an important economic centre of Europe. Now, the transatlantic partnership and free trade is affected after its exit from EU.

UK is expected to lose more than 950,000 jobs and £100 billion by 2020. After the majority of the UK citizens chose to exit from the EU. Overall there is a lot of momentum and fluctuation prevailing in the currency market. Due to Brexit which offers exciting trading opportunities for Forex traders in 2017.

Traders have to become a lot more bearish on GBP

Cable has come back in touch with the supporting trendline on the weekly charts and at 1.5200 could be a significant price for a rebound even as rates remained unchanged.

Currency options indicate that traders have become a lot more bearish against the pound. A weaker sterling has been a blessing for stock markets. As the blue-chip stocks enjoyed 14 consecutive days of growth, while FTSE 100 reached a record high of 7221. British Prime Minister Teresa May called for a hard Brexit during her speech on Jan 17th, 2017. This will take Britain out of Europe’s single market. She told that certain hard choices have to be made by the UK. In order for the UK to reclaim immigration control and to emerge as a strong independent nation. This has further resulted in the downfall of sterling against major currencies like USD, EUR and JPY. However, the fall of the pound provides the market with 2017 Brexit trade opportunities.

Currency traders can take advantage of this volatility in Pound and make use of forex binary options to gain profits. You can use a “Put” option against GBPUSD pair. Since there is a high probability that sterling may fall further against the dollar. A hard Brexit will have impact on both GBP and Euro against the USD. For the next six months, Forex traders can use this to their advantage. The speculative bias on Sterling offers a lot of appealing opportunities for Forex traders. Specially in trading the EURGBP, GBPJPY and GBPUSD currency pairs. Forex traders can also take advantage of the Brexit volatility in GBP and EUR with the help of techniques like swing trading. In which the trade positions are held for shorter amount of time with an aim to catch a swing in price changes.

Using Binary Options to trade 2017 Brexit Trade opportunities

Binary Options Industry Association,In near term, there is no possibility of recovery for undervalued pound. Hence, Theresa May’s plan for a clean Brexit has further pushed GBP down against major currencies. Forex traders can capitalise on the volatility of the currencies GBP and EUR and make profits by trading binary options against these currency pairs. FX trading using binary options is one of the options to take advantage of the fluctuating market conditions, as you bet against the price movement of the currencies rather than trading actual currency pairs like traditional forex trading. Hence you can take advantage of market movement and gain profits, whether it is moving in downward or upward trend.

If your are a novice Binary Options trader then check these golden tips, prior trading Binary options. Make sure you only work with regulated brokers. Such as anyoption which has a CySEC license.

Monitor GBPJPY for price correction later in 2017

Brexit Court Ruling, Sterling staring at Parity, GBPUSD trades within narrow price range, gbpusd-pound-usdForex traders can make use of technical indicators like Elliot Wave, Fibonacci series, Moving Averages and other tools. In order to predict the price movement of the currency pairs GBPJPY, EURGBP and GBPUSD all of which are good pairs to bet against in 2017. Market analysts have predicted EURGBP currency pair will become another strong leg higher as 2017 progresses. Also selling the Euro against Yen and British pound is considered to be a good choice. You can monitor GBPJPY and specifically observe for price correction to develop later during this year.

Spot forex trading is more price centric, you trade on actual currency pairs. Whereas FX binary options are time-centric and you trade only on the market movement. FX binary options are derivatives with better risk management options and requires as little as $25 investment. Also, it requires less market knowledge. If you are able to speculate the price movement of these pairs accurately, you trade with FX binary options. Hence, it is ideally suitable for trading the 2017 Brexit trade opportunities.

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