King Pound is dancing while music still plays
The GBPUSD has covered huge distance in just 3 trading sessions without any major economic breakthrough other than Dollar weakness across the board.
So should we believe that in 3 days UK economy is now shinning beacon of hope. i doubt it. GBPUSD is just taking advantage of the King Dollar Weakness.
GBPUSD has COVID-19 still lingering and BREXIT waiting for them , so in the near-term i don't see GBPUSD going past 1.2910 .
Expect GBPUSD to collapse back to 1.2400 and below in 1 to 6 weeks if the USDX index recovers to around 95.00
Always remember : USD is the world reserve currency and it affects everything
So should we believe that in 3 days UK economy is now shinning beacon of hope. i doubt it. GBPUSD is just taking advantage of the King Dollar Weakness.
GBPUSD has COVID-19 still lingering and BREXIT waiting for them , so in the near-term i don't see GBPUSD going past 1.2910 .
Expect GBPUSD to collapse back to 1.2400 and below in 1 to 6 weeks if the USDX index recovers to around 95.00
Always remember : USD is the world reserve currency and it affects everything
Comment:
UPDATE to a Long-term trade:
Short at 1.2890 to 1.3150 ( Top end of range adjusted to 1.3150 )
TP Exit : 1.2400
SL Exit : 1.3600 ( adjusted from 1.3200)
Period: 1 to 6 weeks.
GBPUSD & EURUSD are greatly benefitting from USD weakness across the board not because UK or EU Economy is doing OK.
Note: Most of the Central Banks hold USD in Reserve due to stability and Dollar funding mechanism , and when USD is cheap they tend to be Buyers of USD. So at what point does the Central banks of the world come in and start buying USD for their reserves security ?
US treasury Yields (2 , 5, 10 , 30 years ) are at their lowest in decades so with those rates and central banks see a good opportunity of buying Huge USD reserves amounts on the cheap at almost 0% interest rate and lending it out to their country financial institutions for a few years with huge returns for Central banks .
Short at 1.2890 to 1.3150 ( Top end of range adjusted to 1.3150 )
TP Exit : 1.2400
SL Exit : 1.3600 ( adjusted from 1.3200)
Period: 1 to 6 weeks.
GBPUSD & EURUSD are greatly benefitting from USD weakness across the board not because UK or EU Economy is doing OK.
Note: Most of the Central Banks hold USD in Reserve due to stability and Dollar funding mechanism , and when USD is cheap they tend to be Buyers of USD. So at what point does the Central banks of the world come in and start buying USD for their reserves security ?
US treasury Yields (2 , 5, 10 , 30 years ) are at their lowest in decades so with those rates and central banks see a good opportunity of buying Huge USD reserves amounts on the cheap at almost 0% interest rate and lending it out to their country financial institutions for a few years with huge returns for Central banks .
Comment:
King Pound has been dancing hard from 1.2200 area to 1.3050 in just 20 trading days
i.e 850 pips in a very short time . But King Pound is also very notorious with Sudden collapses . The Pound can sometimes do the impossible in FX markets .
The Pound is mostly a speculators Currency. The majority of FX volume (80%) comes from:
EURUSD and USDJPY But GBPUSD & USDCNH are distant second in terms of volume traded per day and that's why its suspect to Speculators manipulation
i.e 850 pips in a very short time . But King Pound is also very notorious with Sudden collapses . The Pound can sometimes do the impossible in FX markets .
The Pound is mostly a speculators Currency. The majority of FX volume (80%) comes from:
EURUSD and USDJPY But GBPUSD & USDCNH are distant second in terms of volume traded per day and that's why its suspect to Speculators manipulation
TP Exit : 1.2400
SL Exit : 1.3200
Period: 1 to 6 weeks