SELL THE £GBP - WAIT FOR THE SELL SIGNAL

There's a lot going on in the UK with a new finance minister (Jeremy Hunt) to unwind the actions of Kwasi Kwarteng who was replaced on Friday, now that was a short period in government after he created panic in the markets. And now we're going to capatlise on that again. But be patient, the markets could see this as a very favourable move into a safe pair of hands and I'm expecting the GBP to explode higher, especially with a strong USD $ and the DXY back at the highs after market close.

We have some major area of confluence which willl give us a lot of volatility and we're looking for a sell signal around that 1.5 area, and in the unlikely hood we explode higher, we'll wait patiently for a sell signal at 1.2.

This is a daily chart, we have a lower risk, high opportunity of getting more profitable trades by doing considerably less work without watching the markets all day.

Comment:

The DXY is stil declining with streth and therefore the GBP is on a strong move to the upside. Do not enter the trade until 1.15 and wait for the price action sell signal

Comment:

As expected out of the gate from the news from the UK finance minister, we've hit the first area of resistance at 1.14, I'm expecting this to weaken and a bear trap to bring in the bulls to push that upto 1.15 and we're then into a major weekly area that will be hard to breakthrough without some serious weakness from the USD $, so keep an eye on the DXY.

Trade active:

We're active in this trade and have targetted 1.06, this may take a while

Trade active:

Added to our position again on this one on (and quite a few others)

Comment:

We've broken the 1.14 area, so we're going to see more weakness into 1.15 and then we'll be looking for a sell signal and we'll be adding another trade to this huge downtrend, a break high and using that area as support (3 touch) will invalidate this trade.

Comment:

We've hit the edge of the downtrend channel, an area of confluence, some traders will value the channel edge and others will value the area of resistance at 1.16, either a break higher or it's back to the downturn, we need to look towards the DXY to see if it's finished it's at the "bottom" of the current decline. If not, the GBP will go higher.

Trade active:

A further trade has been added after the Fakey at 1.158 and we moved down and tested 1.1575 twice and the support failed. We're expecting a weaker currency going into next week with a stronger outlook for the FED report in the middle of the week, especially after the stronger numbers in the USA this week.

Just too many reasons to keep the Bulls away at this point.

Comment:

What a great move to the downside from that area of confluence at 1.56

Trade closed: target reached:

Taken the first significant target and we're now waiting patiently to carry on down towards our T2 1.106, we'll need a nice pull back on the DXY to drive more upside pressure, which will move all currencies not just Cable.

Trade active:

We are now at the second sell stage since GBP hit the 1.2 level, on the weekly this pair on a downtrend and that will not change, the USD will always win against the other currencies and you can see this from my 5 year forecast on the USDEUR which I sold continuously for years and still do.

We're waiting for an agressive move up by the DXY to indicate we're going back to the highs, but I have got in early at 1.2 for a first trade