ICmarkets

Our thoughts on this pair right now...

FX:GBPUSD   British Pound/U.S. Dollar
161 3 1
Following Sunday’s 240-pip gap lower, the GBP continued to decline in value against the US dollar             yesterday, erasing a further 200 pips in the process! In spite of price finding support around the 1.32 handle as well as trading back around referendum lows 1.3226 (marked support on the daily timeframe ), this storm is far from over as political uncertainty continues to plague the GBP currency.

Although one could take the three nice-looking H4 buying tails around 1.32 as a signal to go long, we would not label this a high-probability zone for a trade! We could go on for hours why one should or should not trade this pair. Of course we understand why bearish sentiment on this pair is strong and no doubt a lot of traders are trying to take advantage. However, we’re pretty sure the majority thought the pound was going to appreciate when the ‘remain’ camp was almost sure to take victory! This just proves that following the herd does not always work!

To put it simply, in times of trouble we either look for other opportunity elsewhere or simply remain flat. Trading is all about risk management and about acting in one’s own best interest, and trying a hand in this market when the Brits economy is up in the air is just too much of a gamble for us.
MsaqibC
8 months ago
what do you mean by Quasimodo line ?
Reply
ICmarkets PRO MsaqibC
8 months ago
We are referring to the Quasimodo pattern. Check it out here where it is very well explained: http://www.nobrainertrades.com/2009/06/over-and-under-pattern.html
Reply
MsaqibC ICmarkets
8 months ago
Quasimodo = Head & Shoulders
:)
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out