Given U.K’s current situation losing U.S as trade partners is not something they can accept lightly.
In any event of May losing her seat will throw U.K government to a temporary shutdown before another round of election kicks in.
As multiple factors are strongly against May, I remain on Pound till we hear more from how May intend to handle the situation.
Given current condition that Pound is being sandwiched in between 2 bands, I will setup for pending Shorts rather than jumping right in despite being on Pound.
Currently near support level as highlighted, next up shortly we have data release and this is going to be very tricky. The outcome will cause a tug-o-war effect between possible hike and Brexit's outcome.
As such, I will be adjusting my trading band wider to prevent getting trap and whipped.
Will stay side way for now and re access the market condition. If technical closed with bullish engulfing pattern, turn around towards 1.32 is likely to happen.
Pound had been through long weekS of sell down which I feel is slightly over sold. I am not changing my stance until I hear more after this week.
Dollar hike is boring news to the market, everyone knows it already. If Fed is just reconfirming this piece of news again this week, dollar isnt gonna do much but rather market wants fresh information for them to price in.
Not gonna chase but will look to short on pullback instead. Market is starting to price in and next support liking to test 1.2844 - 1.2810
This week's plunge is largely pricing in of 60% no deal brexit. In an event of positive sign of brexit deal will move this pair higher.
In terms of price action, this pair is still under selling pressure, no signs of stopping yet plus we have U.S data release later in the day, on good data could likely push price downward to test 1.277x