THIS IS NOT A TRADE RECOMMENDATION, JUST AN IDEA.
After last week's beat down of the GBPUSD, I think that a strong reversal may ensue from government intervention similar to the Plaza Accord deal that was struck in 1985.
Daily close needs to be above $1.0855 is the next step to calling a bottom. Calling a bottom is mostly unprofitable and dangerous business. However, these are multi-decade lows that are drawing the attention of central banks globally. The US is sowing no restraint from raising interest rates with CME Group showing 75 bps increases for the November and December meetings as of the date of this publish (9/27/22).
THIS IS SPECULATION AT THIS POINT AND NOT A TRADE RECOMMENDATION. That being said I do have a buy stop at $1.08533 with a target of $1.12 and a very shallow stop loss of $1.07824. I do not think this trade will execute but I have it placed just in case.
Again, a daily close above $1.0855 is necessary before a slow technical turnaround could be called.
On the other side of this trade, the Fed is showing very strong resolve to maintaining 75bps rate hikes and if BoE doesn't at least keep up, the GBPUSD will continue to nosedive. If you get into this trade, place your SL responsibly.
After last week's beat down of the GBPUSD, I think that a strong reversal may ensue from government intervention similar to the Plaza Accord deal that was struck in 1985.
Daily close needs to be above $1.0855 is the next step to calling a bottom. Calling a bottom is mostly unprofitable and dangerous business. However, these are multi-decade lows that are drawing the attention of central banks globally. The US is sowing no restraint from raising interest rates with CME Group showing 75 bps increases for the November and December meetings as of the date of this publish (9/27/22).
THIS IS SPECULATION AT THIS POINT AND NOT A TRADE RECOMMENDATION. That being said I do have a buy stop at $1.08533 with a target of $1.12 and a very shallow stop loss of $1.07824. I do not think this trade will execute but I have it placed just in case.
Again, a daily close above $1.0855 is necessary before a slow technical turnaround could be called.
On the other side of this trade, the Fed is showing very strong resolve to maintaining 75bps rate hikes and if BoE doesn't at least keep up, the GBPUSD will continue to nosedive. If you get into this trade, place your SL responsibly.
Order cancelled:
I closed the GBPUSD trade as unfilled.