GBP/USD Daily: Boris shall set you free...

30 July 2019/10:37 a.m. ET

As you probably know, I am no fan of the EU.  So, by extension, I am routing for Boris to succeed.  And I believe he will succeed in successfully taken the UK out of the EU and the country will be many times better off as a result once we get this period of relative chaos.  

This is a piece I wrote back on June 22, 2016: Why Stay UK?  A taste below...

“Given that the aim of the European Union is to eliminate democracy by reversing the result, as perceived by the European Union, of the Second World War—supposedly a victory for the sadly mythical ‘Anglo-Saxon model’—it is not surprising that Britain is a primary target and that the EU nomenklatura—and indeed the global nomenklatura— is so desperate to retain control over it. The ultimate intention is to establish anti-democratic rule, and the ‘Rhenish’ model of crony capitalism, globally. But Britain has been the low-hanging fruit. That is why it is so important for the world for Britain to be allowed to regain its freedom and to re-establish democracy.”
Bernard Connolly, 
Don’t Trust the European Union, International Economy
Whether you like him or not, and I do, 
Nigel Farage nails it once again in this clip from the European Parliament as he expounds on the dangers and failures of the EU—the look on the faces of German President Merkel and French President Holland are priceless...

My view hasn't changed. Watching the machinations of the power elites (mostly remainders), I believe my view has been clearly validated. 

Another piece I saw in Chronicles magazine yesterday, was very bullish on Boris: Boris Johnson's blood sports.  A summary...

“The washing of the spears,” was the Zulu term for victory in battle. The latest phase in the Tory civil war has seen a brutal triumph of the Brexiteers, with no quarter extended to the vanquished. Of Theresa May’s Cabinet of 23, 16 have fallen as in an Elizabethan Revenge tragedy. It turns out that Boris Johnson’s favourite movie scene was the multiple killings at the end of The Godfather, and “carnage” was the verdict of Matthew Parris, the star columnist of the Times, reflecting the Remainers’ anguish.

I share those two pieces as background for my view the British pound is EXTREMELY undervalued should Boris succeed.  So, once we get through this near-term turmoil, and if Boris proves successful, we want to own all the British pound we can afford (leverage).  :)  This timing should coincide nicely with our intermediate-term view of the US dollar topping in early 2020 and setting up for a major bear market. 

For now, we are targeting down toward 1.1700 in the pound and suspect the Brexit low near 1.1400 is the bottom. 

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