One year till Brexit, and the economy is stumbling. GBPUSD alone fell from 1.43270 to 1.35808 in a matter of 16 days. The Manufactuing PMI, along with Net Lending and Money Supply, decreased.With recent fundamentals such as US NFP and Unemployment data, the base currency may not standardize up to its quote currency.
The technicals suggest a broader view. The pair is expected to break the resistance-turned-support as the USD may become stronger after the data release. Also, the Stoch-RSI suggests an overbought market. The divergence there confirms it all : the pair is going underground for good. The 38.2% Fib level looks a very interesting area to put sell stops.
With that provided, I believe GBPUSD seems a good pair to short and end the week with.
Happy trading next week!
-Riz
The technicals suggest a broader view. The pair is expected to break the resistance-turned-support as the USD may become stronger after the data release. Also, the Stoch-RSI suggests an overbought market. The divergence there confirms it all : the pair is going underground for good. The 38.2% Fib level looks a very interesting area to put sell stops.
With that provided, I believe GBPUSD seems a good pair to short and end the week with.
Happy trading next week!
-Riz
Trade active:
Shorted.
TP -1.35492
TP -1.35492