ridethepig

Brexit cannons knocking at the doors to real economy

Short
FOREXCOM:GBPUSD   British Pound / U.S. Dollar
=> The fortress to the real economy has been battered, bruised and left with more than a fat lip. In this idea we are going to be digging deeper into the technical side of the chart so that we can begin to get in sync with algorithms and how they are reacting to Brexit.
=> The initial selloff from the vote in August formed a 5 wave correction which is underpinning this downtrend continuation.
=> The levels in play next are 1.257 - 1.244 ... anything below here will provide confirmation that we have opened the castle doors and are breaching the inside. Here we will once again add exposure to the downside with targets next in focus at 1.22.
=> Taking the lows is not really in play from a technical perspective so we will be needing to dig deeper on the macro (and political side in this case) ... more on this in our end of year posts and 2019 expectations.
=> Best of luck to those in the UK and trading cable.
Comment: No break and close below yet... offering us better value areas to add shorts from. For those trading the Brexit flow we have updated our GBPUSD chart:

Comments

rekt
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terrible
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Do you see similarity in Reg Bullish divergence on Weekly TF to the one that happened at the beginning of 2017 and turned into full Bull run?

Thanks!
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makes sense!
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Nice ;)
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