1. Long-term trend-line now acting as new resistance
2. rejection of trend-line connecting lower swing highs
3. Rejection of key 1.55
4. Rejection of 50
5. High-Test Candle
1. GBP Manufacturing PMI came in at 51.4 vs a 52.6 forecast. The UK economy is now hovering above the important 50.0 neutral level as the manufacturing sector within the UK continues to weaken.
2. Manufacturing Production m/m came in at a -0.6% contraction vs 0.1% expected growth. This adds even more support to the contracting manufacturing sector within the UK
3. The official bank rate was kept at a record low 0.5% on Thursday, July 9th as the BoE reduced its hawkish tone eliminating any risk of a possible U.K rate hike in the near future.
4. The Greek Bailout Deal has reduced overall market risk, and investors are now piling back into the US Dollar . I am expecting the next leg of the USD market to resume for the remainder of the summer.
I have entered this trade with a hybrid strategy utilizing two positions.
1. Each position has been entered at 1.54850, with each stop-loss at 1.55850
2. The target for position 1 is at 1.53850 offering a 1:1 Risk-Reward
3. Once Target 1 is reached, position 2 will be moved to break-even.
4. I will then utilize smart stop-placement to generate as much profit potential out of position 2 as possible.