FXB Forecast


Bullish Case: FXB's near-term price action shows stabilization and recent uptrend. High implied volatility at lower strike prices suggests potential sharp upwards move.


Bearish Case: Historical price return surface indicates high likelihood of negative returns for holding periods beyond one year. Recent AI price forecast predicts slight decline.


Potential Outcomes: FXB around 125 (65%), sharp drop to 110 (20%) or significant rise to 130 (15%), driven by High market implied volatility and recent options activity.


Trading Oracle: Sell credit spreads for FXB. Bullish strategy using a 135-145 call spread, expiring in ~90 days, leverages elevated implied volatility. Positive edge and profit potential.


July 18, 2024


Invesco CurrencyShares British Pound Sterling Forecast

FXB      Invesco CurrencyShares British Pound Sterling











Correlated Assets

Assets that tend to move strongly with FXB



FXE Forecast + Options Trading Strategies   FXE  Invesco CurrencyShares Euro (0.78)


XLRE Forecast + Options Trading Strategies   XLRE  Real Estate Select Sector SPDR (0.73)


VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.73)


BND Forecast + Options Trading Strategies   BND  Vanguard Total Bond Market (0.73)


DRN Forecast + Options Trading Strategies   DRN  Direxion Real Estate Bull 3x Shares (0.71)



Uncorrelated Assets

Assets with little price relationship to FXB



SDGR Forecast + Options Trading Strategies   SDGR  Schrodinger (0.0)


ODP Forecast + Options Trading Strategies   ODP  ODP (-0.0)


SNOW Forecast + Options Trading Strategies   SNOW  Snowflake (0.0)


MTCH Forecast + Options Trading Strategies   MTCH  Match (0.0)


PZZA Forecast + Options Trading Strategies   PZZA  Papa John's International (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against FXB



TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.61)


RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.63)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.7)


TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.71)


REK Forecast + Options Trading Strategies   REK  ProShares Short Real Estate (-0.71)





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