Hey, guys! This week I’m looking at GBP/USD for possible trading opportunities. Are you checking out the same setup?
I knew I wanted to trade GBP/USD when I saw on MarketMilk™ that GBP/USD is the most volatile among the majors (EUR/USD, GBP/USD, USD/JPY, and USD/CHF) in the last five Octobers.
I also knew that I wanted to short the pair after MarketMilk™ pointed out that SMAs, EMAs, and short and long-term MAs all point to a BEARISH trend for Cable:
Unfortunately, I think I already missed a good entry level when GBP/USD turned lower from 1.2500. Question is, can the pair retest the previous resistance and allow me to jump in?
I know Cable is already well on its way to August’s lows, but I’m hoping that the combo of the U.K. court delaying a key Brexit decision until after the EU Summit; the Fed’s “not QE” QE, and a potential partial trade deal between the U.S. and China will boost risk appetite enough to bump GBP/USD back up to the 1.2500 resistance.
If Cable continues to drop anyway, then I’ll just wait below August’s lows and trade a potential downside breakout instead.
In this case, I’ll wait for a clear move below 1.1900 or enter at a retest of August’s support.
How about you? Do you have a short GBP trade or plans to short GBP/USD?
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