In order to profit from an expected near-term increase in the relative value of the British pound versus the U.S.dollar,an investor would be wise to maintain a short position in pounds,then sell when the pound rises in relative value.

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If an investor maintains a short position in pounds, they are essentially betting that the pound will decrease in value relative to the dollar. Therefore, if the pound actually rises in value, the investor would experience a loss rather than a profit. In order to profit from an expected increase in the pound's value, the investor would need to maintain a long position in pounds, then sell when the pound rises in relative value.

In Order to Profit from an Expected Near-Term Increase in the Relative