GBPUSD – Looking to reverse shorts
GBP traded slightly stronger overnight, having found support above three week lows around 1.5050 levels. But GBP remains vulnerable on diverging monetary policy stance between BoE and Fed, especially following BoE Governor Carney’s dovish speech and records of low inflation. Attention will slowly turn to UK Q3 GDP due this Friday as US investors are enjoying Thanksgiving holiday.
While 1.5160 contains upside reactions expect a test of of bids at 1.50 as the next bearish objective. Only a close above 1.5250 eases immediate bearish bias
- We are currently holding short positions from 1.5330, I am tightening stops as we head towards the test of psychological 1.50 descending trend line and the spring base support area.
- Will be monitoring intra day reversal patterns on the initial test of stops sub 1.50 anticipating the market to chase price action at poor entry levels and a squeeze to develop as per the chart below.
- Trading Update – Long 1.5025 Stops below today’s low
- Trading Update – Stops to entry
For updates on trade of the day set ups and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick