Sforex
Short

GBPUSD NEXT WEEK: STRATEGY TO POSITION.

FX:GBPUSD   British Pound/U.S. Dollar
180 2 4
Next week, there are two main focuses regarding to GBPUSD             :
- BoE Minutes + UK Unemployment Rate + Claimant Count Change
- FOMC Minutes
Both are relieved on Wednesday.
There is 80% possibility that FED would taper $10 bln, and this would benefit for USD.
However, I don’t know surely about UK economic data. It could be positive or negative.
So How to position ?.
I will place a SELL Limit at 1.6713
If UK data give positive data, GBPUSD             would test 1.6713, the SELL Limit order is activated, and the FOMC Minutes would drive GBPUSD             to be lower as I expect.
If UK data give negative data + fuel from FOMC Minutes , Sterling would be sold drastically .
Currently, GBPUSD             is trapped in the range between 1.678 and 1.658
I think GBPUSD             would reject this range this week; the problem is uptrend or downtrend.
In the worst scene, UK economic data are positive, and FOMC Minutes keeps unchanged monetary policy , no cut QE             more, no one could save USD, but I think it’s 10% possibility.
If everything occur exactly with my forecast: GBPUSD             couldn’t hold 1.658 level; it will jump to 1.647 level.
matt_forex
2 years ago
I assume if you sell you will be placing your stop just above 1.6783, and if the data is more negative than expected for the GBP, do you think it could reach 1.6300?
I think a breakout of this range will initially be a measured move of the prior range.
Reply
Sforex PRO matt_forex
2 years ago
It's hard to jump to 1.63 because UK economy basically is still good. We should wait for more catalyst.
Reply
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