DESPITE THE ANTICIPATED CASH RATE HIKE YESTERDAY, THE POUND STILL GOT WEAKER IN OVERNIGHT TRADING. GBP FELL ALMOST IMMEDIATELY AFTER GOVERNOR CARNEY’S DOVISH STATEMENT. HE STATED THAT FURTHER RATE HIKES WILL BE LIMITED AND GRADUAL, AND POLICY “NEEDS TO WALK, NOT RUN, TO STAND STILL.’’
THE DOVISH STATEMENT WAS THE REASON STERLING WAS ONE OF THE WEAKEST OF THE MAJORS YESTERDAY. THE POUND ENDS THE WEEK WITH SERVICE PMI DUE FOR RELEASE IN 6 MINUTES AT THE WRITING OF THIS PLAN. THE FORECAST PRINT IS 54.7.
BREXIT HEADLINES ALSO REMAIN A FOCUS POINT.

GBPNOK H4

YOU COULD PROBABLY TRADE OTHER POUND PAIRS THAT ARE BETTER THAN THIS ONE. ANYWAY THIS PAIR HAS BEEN TRADING IN A DESCENDING CHANNEL FOR A WHILE NOW. TECHNICALLY THE ANGLE OF SEPARATION BETWEEN THE 55 AND 21 EMA IS NOT THAT GREAT AT ALL, HOWEVER ITS STILL TRENDING DOWN. NOTE THAT I AM USING MONTHLY PIVOTS ON THIS PARTICULAR H4 CHART. PRICE IS AT MM3 RESISTANCE WHICH IS ALSO ROLE REVERSAL AND TECHNICALLY BEARS WILL LOOK SHORT AT RESISTANCE. IF RESISTANCE HOLDS AND PRICE FALLS THAN MY TARGET IS AT MM1.

GBPNOK H4 POST TRADE PLAN UPDATE

AS PLANNED PRICE FELL FROM THE RESISTANCE I HIGHLIGHTED ON THE PLAN. PRICE FELL 166 PIPS BEFORE BOUNCING OFF OF MS1 SUPPORT PIVOT. I BANKED A COUPLE OF PIPS ON THIS TRADE PLUS SOME POSITIVE SWAP.

Leave a Reply