Trading Plan – Monday 7th December 2020: GBP slides as trade talks stumble

Mark NugentDec 2020, Trading Plan

Trading Plan – Monday 7th December 2020: GBP slides as trade talks stumble

It is another “final” week for Brexit trade talks. Recommencing in Brussels, the negotiators will discuss the final three issues – fisheries, level playing field and enforcement. There has been a lot of mixed headlines over the weekend and the GBP is significantly down this morning. I still believe risk are skewed to the upside (a deal is more likely than not), and I will be looking to position myself to take advantage of an expected GBP rise when a successful deal is announced. The European Council Meeting is Thursday and Friday this week so we may get a result, one way or another, by Wednesday.

The week is starting moderately risk-off (noon, GMT) and equities are pulling back from last week’s new all-time highs (for all three US indices and Japan225). At these valuations I will need to see a pullback before going long so equities are setting up nicely for me.

As always, in the VIP Club members video I give a detailed description of my trading themes for the week. Also available is a brief video on Trade 67 (EUR/JPY long) which I closed on Friday afternoon for a gain of +1.82%.

Have a great week. I’ll be back on Wednesday.

The VIP Club members area is HERE