Most of today’s Forex AM talk focused around the GBP/USD since that was where the headlines and traders were focused. The cable while weak has set up a swing buy opportunity on the daily and I walk through the set up on today’s show.
It’s an interesting look at what I call a “one thing leads to another” set up where the short-term time frames were bearish (very bearish!) yet the Directional Bias of the daily was bullish and so the negative fundamentals drove the pair lower to eventual support with the daily’s 34EMA Wave.
There’s no reason the short-term negativity couldn’t be played especially when you look at the five, 15, and 30-minute time frames that went red on the GRaB candles long before the 4:30am EST UK GDP release. But do not neglect the dominant psychology of the daily which while it’s certainly correcting, is still bullish.
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