The pound is broadly mixed when crossed with certain pairs, but for right now, GBP can be very lucrative right now if you play it the right way. Here are some GBP pairs to trade that could help your portfolio in this time of crisis.
GBP usually acts as one of the risk-on currencies regardless of the 50bp interest. So, in the short term, any kind of movement to the upside is reflecting the increase in risk appetite by investors. The pound also somewhat mirrors the performance of US equities, or at least the direction because they both behave similarly on sentiment.
GBP/CAD breaks under support to a lower low on the 1D. Canada's loonie is probably going to vastly outperform others in the short term because of the lower oil supply around the world and skyrocketing oil prices. Price could come down to 1.68400s before seeing any kind of support on this timeframe. That recent death cross is another indication that the trend is now bearish.
GBP/JPY sank to the 200 DMA before turning back to the upside on the day. The pound was likely suffering due to the trade sanctions placed on Russia, but overall there is still a long trade in the making as support in the 152.600s looks promising. GBP seems like a good long play against the yen because of the monetary measures (higher interest) the government is already taking.
GBP/AUD has fallen nearly 4.8% from the highs in January and over 3% since the conflicts in Russia-Ukraine borders. Gold has been outperforming because of this which is what is helping AUD gain demand. A close below support suggests more downside, and the pair is likely up because equities are as well.
GBP/USD is likely going lower should the fighting continue in Ukraine. Despite the more hawkish policy on the pound, this probably won't matter in the short term. The recent lower low makes the pair look bearish in the short term while investors would flock to the USD if concerns persist.
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