First new trade of 2013 for SBM portfolio – back in sterling oz (GBPAUD)

We hope to maintain our 90% success ratio (how many can match that – “anal”ysts and other publications?!) this year and kick of 2013 with a new Trade play in our old friend, the “sterling-Oz” pair.

The pound remains around 25% undervalued against the Ozzie, and as you can see from the weekly chart below, the downtrend is long in the tooth and is now plateuing. We like the price action against the intermediate downtrend line from summer 2010 and the classic “saucer bottom” that has been forming for the last 2 years.

Long @ 1.5385. Stop at 1.5180. Targetting $1.70+ as the year progresses. It is also a pair that is inversely correlated with the equity markets and so a good hedge for bull positions.

If you’d like to position yourself for exposure to our sister company – Titan Investment Partners – funds that we will open to the public in the next few months then email TITAN to editor@spreadbetmagazine.com. Our flagship fund is now up almost 100% with minimal volatility over the last 5 months.