Trade Of The Day: GBP Eyes Psychological 1.50

GBPUSD – Carney Blindside GBP Bulls, Bears Now Target 1.50

GBP dropped to 1.5201, its lowest since 13 October, after BoE monetary policy meeting. The Bank of England kept interest rates unchanged, in addition, saying that Britain’s inflation would only pick up slowly even if borrowing cost stay on hold. After the dovish BoE’s announcement, Sterling fell sharply since investors, who had expected for clear rate hike signal, were surprised.

Price testing stops subs 1.52 as suggested by another failure at 1.53, while 1.5250 caps upside intraday reactions a retest of of 1.5050 is the next downside objective

Trade Idea

  • Today I will be monitoring GBPUSD looking for an upside reaction to test and fail 1.5250, where I will venture short leaning against this level targeting a sustained break of 1.51 en route to the psychological 1.50 objective where i will reassess price patterns as per the chart below
  • As always I will not take a position in advance of today’s NFP tier one headline risk

2015-11-06 09_18_32-

For updates on this trade set up and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick

Posted in Daily Setups, tagged with on