Our CurrencyShares British Pound (FXB) long trade from our March 7, 2017 Seasonal Sector Trades Alert is coming to the end of its usual seasonal run, but we are going to hang on and let this winner ride if it holds the December high. The main driver for this seasonal trade, the end of Britain’s fiscal year, was aided by Brexit concerns this time around and FXB is currently up 5.2%. The favorable seasonality behind this trade typically comes to an end now, but recent strength by the pound has traced out bullish a 1-2-3, “W” bottom pattern when FXB closed above its December high earlier this week. This should give FXB an opportunity to see if the breakout can hold and deliver further gains.
Disclosure Note: At press time, officers of the Hirsch Organization, or accounts they control held positions in FXB.