Trade Plan:
Sell, entry 1.2580, TP1: 1.2480, TP2: 1.2350, TP3: 1.2220, SL: 1.2610
Sell, entry 1.2580, TP1: 1.2480, TP2: 1.2350, TP3: 1.2220, SL: 1.2610
Comment:
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Trade active:
Our entry price was triggered.
Trade active:
Some of you might consider TPing part of the order now.
Trade closed manually:
The price reached 1.2400 and made an accelerated run to 1.3200 making it less probable that price will move once again lower than 1.2600.
In the hours of the formal meeting, the sterling plunged more than 200 pips against the dollar and created the technical premises for a subsequent descent. It made a new lower low this year and re-entered into the limits of a previous downtrend channel it had glided on for 4 months since the end of April.
The MPs are engaged, at this very hour, in a principled argument with Theresa May and members of the government. A coincidence or not, the euro has spiked against the dollar from the lower limit of the uptrend channel where it dived to yesterday, as if a delayed follow-up to GBPUSD price action in the first half of the London session.
The technical indicators on lower time frames are supporting an immediate descent, the Stoch (5,3,3) (1h) is hovering in the overbought area while RSI (14) (1h) is at 70 (0-100). The same applies for the ADX (14) (1h & 4h) which is ready for big moves.
Next week to be released UK key data is CPI (YoY) (Nov) and Retail Sales (MoM) (Nov), both retaining a positive forecast, as well as the GDP Growth Rate (QoQ) (Q3) presumed to be at 1.5% (consensus). The BoE interest rate is expected to rise to 1% from 0.75% currently.
In the event, Theresa May remains in the office, the pound may continue giving ground to the dollar. The prospect will, therefore, be to short the pair to the 2017 year low, 1.2220 – 1.2020.