Here we have what I interpret as a potential long and my reasons behind why I think that and why im choosing to stalk GU of all pairs this week. I will keep is short and simple as to not over complicate things for new traders.
WHY GU - Simple, we have sterling cash rate this week AND we have USD cash rate this week, interest rates are the single most powerful and meaningful influences on overall directional narrative available.
WHAT makes me think so - I see the fed about to pivot off the high rate hikes, there is a balance in the universe and it has been pushed one direction for a long time and balance of some nature must take place.
CATALYST - If sterling interest is hawkish and USD interest is dovish then we will see a catalyst for a long term directional shift take place, enough to usher GU back into a bullish rally for a long time to come.
LOOKING FOR - GU to take liquidity that is resting above a weekly volume inefficiency, basically i see the market driving down to rebalance or fill skipped orders and in the process the market makers will find the opposing end of the positions they are looking to take in the form of carry long trades on GU. why? Because they want to milk any potential interest rate different they possible can and they will, and they will do it for years, they will stage and position for years to take advantage of such things.
Follow a Tuesday / Thursday LOTW market profile and stalk potential trades at appropriate times. Remember - We must have hawkish sterling and dovish USD for this to remain valid.
WHY GU - Simple, we have sterling cash rate this week AND we have USD cash rate this week, interest rates are the single most powerful and meaningful influences on overall directional narrative available.
WHAT makes me think so - I see the fed about to pivot off the high rate hikes, there is a balance in the universe and it has been pushed one direction for a long time and balance of some nature must take place.
CATALYST - If sterling interest is hawkish and USD interest is dovish then we will see a catalyst for a long term directional shift take place, enough to usher GU back into a bullish rally for a long time to come.
LOOKING FOR - GU to take liquidity that is resting above a weekly volume inefficiency, basically i see the market driving down to rebalance or fill skipped orders and in the process the market makers will find the opposing end of the positions they are looking to take in the form of carry long trades on GU. why? Because they want to milk any potential interest rate different they possible can and they will, and they will do it for years, they will stage and position for years to take advantage of such things.
Follow a Tuesday / Thursday LOTW market profile and stalk potential trades at appropriate times. Remember - We must have hawkish sterling and dovish USD for this to remain valid.
Comment:
Almost there, Im going to be on standby to see what it does with the gap risk below us before i engage.