Prime Minister, David Cameron, knowing or unknowingly opened up the Pandora’s Box by suggesting the referendum. Lot is at stake here…

• Future of European Union.
• Future of UK

But which the financial media has largely ignore is the future of David Cameron and his thin margin majority. Even if Britain votes to stay in the Union, exit backers could run to destabilize the government.

Political crisis is likely to deepen if the win is by thin margin. If the exit backers’ win they are likely to demand resignation of Prime Minister Cameron argument being – as a pro campaigner he doesn’t know the next move and exit backers are better suited to run article 50 negotiation. After current ongoing verbal abuse, it is very difficult to visualize how the two distant groups can converge together post referendum.

If pro-campaign wins by thin margin, less than 5%, expect increased call for another referendum even if not immediately but by early next decade as conservatives will be hurt in the next election.

To prevent any backlash from the exit group, pro group needs to win and win big at least by more than 15% margin to prevent call for future referendum in decades to come.

If Brexit is averted it is good to long Pound, but cautiously, margin will matter.

Pound is currently trading at 1.445 against Dollar.