Favorable risk-reward short during last minute Brexit deal chaos. Stops just above 50% fib retracement (from Aug '15-Oct '16).
Price is at 1.9000
Technical Analysis:
- Psychological level 1.9000
- Multi-month channel resistance (since Mar '18)
- Just under 50% fib retracement at 1.9080 (from Aug '15-Oct '16).
- MACD, RSI showing extremely overbought signals...
Havn't made a comment on GBPUSD in a bit mainly since just needed to sit back and see what the developments were. As expected, nothing new has happened while the odds of a no deal Brexit on April 12th are now noticeably higher according to the betting markets. The pound hasn't reflected this reality yet mainly because a deal is priced in. Dramatic volatility will...
Brexit. Its kind of like a bad tattoo in that it never goes away, yet was almost immediately regrettable. Unfortunately that continues to be the case this week with Prime Minister May meeting with opposition leader Jeremy Corbyn to etch out a deal for the House of Commons to pass her bill which has already been rejected three times. Much ink has been spilled and...
GBPUSD will probably be headed sideways until the April 12th deadline after which if there is a no deal (unlikely) then the price will crash through the floor. But if there is an extension longer than a few weeks, I think we can expected to see price action gravitate towards the monthly resistance downward trend.
Next week will give traders a better idea of just how bad and just how quickly we'll get to a no deal Brexit which is looking increasingly likely as days progress. Cleraly, euro long is an overcrowded trade with moving averages showing a downward trend. Political risk from Brexit will obviously weigh next week as well.
More words on why Brexit will hit markets...
Traders are now aware of the April 12th deadline and that it will be extended into May if Parliament passes Prime Minister May's deal she made with the EU earlier in the month. However, the last deal she presented to Parliament lost by a staggering 150 votes. That's quite a bit to make up in 20 days. And what traders are probably not pricing in yet is the...
Traders are now aware of the April 12th deadline and that it will be extended into May if Parliament passes Prime Minister May's deal she made with the EU earlier in the month. However, the last deal she presented to Parliament lost by a staggering 150 votes. That's quite a bit to make up in 20 days. And what traders are probably not pricing in yet is the...
...we have a very interesting idea on the menu today for everyone. This is a very advanced environment and would recommend only those who are experienced to trade this swing position.
=> We are approaching steel resistance once more and it is time to get active on the sell-side in the UK. We have fresh headlines this morning from the political side attempting to...
