The GBPUSD pair rose slightly during the course of the session on Tuesday, but did get back some of the gains.

This is essentially a “dead cat bounce” of sorts, because we do know that the British pound should be devalued over the longer term. With this, I’m looking for exhaustion on short-term rallies in order to sell the British pound again and again.

This is especially true against the US dollar, which will certainly enjoy it’s “safe haven” status in this type of uncertainty. With that being the case, I don’t even have a scenario in which I’m looking at buying the GBP.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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