Despite the dive that the pair took last week, Sept. numbers from CFTC shows the pound as if it’s the last man standing against the dollar awaking, while EUR, CAD, CHF and AUD net positions favouring long USD, GBP longs stands net flat.
Technically the pair is in a down trend and managed last Friday to close inside the triangle range that confined the price between mid 2009 and late 2013, but still flirting with the lower band of the long term ascending channel and the upper band of the descending channel. A clear close inside any of these channels might trigger a trade in either direction with a small risk, saying that I still believe that this market for the next 2 weeks will be ruled by fundamentals; while we are dealing with numbers that favours the USD we can’t rule out the fact that 2 BOE members showed hawkish tendency recently.
near-term favours shorting the pair but I closed most of my short position at Fib 0.5 level ahead of The BOE meeting leaving a small runner targeting Fib 0.618 level, I’ll be adding more if we don’t have a surprise from BOE and if the price shows a clear close below Fib 0.5 inside the descending channel.
Technically the pair is in a down trend and managed last Friday to close inside the triangle range that confined the price between mid 2009 and late 2013, but still flirting with the lower band of the long term ascending channel and the upper band of the descending channel. A clear close inside any of these channels might trigger a trade in either direction with a small risk, saying that I still believe that this market for the next 2 weeks will be ruled by fundamentals; while we are dealing with numbers that favours the USD we can’t rule out the fact that 2 BOE members showed hawkish tendency recently.
near-term favours shorting the pair but I closed most of my short position at Fib 0.5 level ahead of The BOE meeting leaving a small runner targeting Fib 0.618 level, I’ll be adding more if we don’t have a surprise from BOE and if the price shows a clear close below Fib 0.5 inside the descending channel.
