Buy 39.75 SL 37.00 Inflation and commodity prices rising is likely not over yet.
This is strictly a technical play off that multi year support after a quick test and bounce. We bought it on the close, we have a SL below the lows. 100 pips or so.
Ordinarily I would say d not fight the trend. The trend appears to be changing, the UK exit from the EU is bullish, the economic data in the us continues to be slowing growth and inflationary (CRB, COW, Cocoa, Oil). It means a weaker USD for the short to intermediate term and quite possibly a much higher GBP against it. So even in the face of a chart and trend...
Here is the initial correction PYRAMID ON IT.
Its already on the board but adding more to GBPAUD, GBPJPY, Long NZD and AUD against USD and LONG SPX. Its temporary, there is a turn coming. But make the most of it while it lasts.
Taking another stab on the short side GBPAUD. Gave up some small losses attempting it on the move up. It appears the tide may finally be turning. Selling 1.9258. SL Above at 1.9300 Target (MUCH LOWER) - Will update levels shortly.
Sell the lower high. SL Above prev as noted on chart. Look for one more wave lower and dollar strength unless intervention occurs.
Give it a few hundred worth of room on the SL so it can breathe and throw its tantrums.
Enter partial here, partial if move to 50% - 61.8% retrace of prior move. SL - Below 61.8 level.