Were looking at the GBPUSD this is a pair we do not like to trade at present due to the current climate and uncertainty that consistently surrounds this pair.
GBPUSD can be so volatile and unpredictable that even technically with indicators and market sentiment a sudden news flash or tweet sends this market into 100 pip chaos.
Here we take a look at market direction.
Firstly we need to look at the FTSE100, with stocks starting to decline word wide we note a strong sell off and buy into the Bond market.
Next we need to observe the current direction in the GBP weighted, we feel this may be due to turn but again we are waiting for a trend continuation formation to start trading the GBPUSD . We feel jumping in the market now is more of a gamble
Finally looking at the DXY we feel that the stock market still wants to push this higher and may try to continue the push until the end of September.
The GBPUSD looks to be gaining strength and may look like it has reached the bottom and is turning to move to the upside. But how many times has this looked the case? with a No-Deal still on the table and the British Government still in a debate on who should run the country can lead to further declines until we finally find out on the 31st Oct.