Tusk’s Tough Talking Tripping Cable

October 14, 2016

The one major forex pair we haven’t had a chance to focus our trading attention on this week has been GBP/USD.

Headlines around European Union chief Donald Tusk taking a hard line on Brexit conditions and timing to protect union members have been doing the rounds.

“Our task will be to protect the interests of the EU as a whole and each of the 27 member states.”

Basically, Tusk is insisting that the UK cannot hedge their bets to receive all the benefits of the EU that they don’t want to give up to avoid the negative.

“There will be no compromises.”

GBP/USD Hourly:
161014_gbpusd_hourly
Click on chart to see a larger view.

The Cable hourly chart following the flash crash is interesting. Even with the fallout being that basically it was just a big void of liquidity exaggerated by algos, price hasn’t come close to retracing the move and as you can see here, has just ranged sideways lower.

Headlines can do the rounds about hard Brexits and the possibility that they will in fact stay in the EU (oh come on…) all they want, but the post-Brexit GBP/USD chart is all about technical levels.

Just remember that.

GBP/USD Daily:
161014_gbpusd_daily
Click on chart to see a larger view.

Put it in a technical analysis textbook already!

Moving through my charts looking for what grabs my attention this morning and it was in my little indices trading group

S&P 500 Weekly:
161014_sp500_weekly
Click on chart to see a larger view.

Price has pulled back to the weekly zone that we were excited to break out to record highs.

I’m not only referring to this level so I can bring out this gem:

Iraq Foreign Minister: No US interest rate hike meme

…but really I am.

S&P 500 Daily:
161014_sp500_daily
Click on chart to see a larger view.

As its a weekly level, it’s never going to hold to the pip, but a daily pin bar forming on the line will be significant enough to at least show some buyers lurking in the midst.

Just remember that the calendar is pretty full to finish the week off, highlighted by Janet Yellen featuring as the keynote speaker at the 60th annual economics conference hosted by the US Federal Reserve Bank of Boston.

Don’t undo a good trading week chasing low-quality trades on a Friday. Be an intelligent trader.

Enjoy the weekend!

———

On the Calendar Fridayy:
AUD RBA Financial Stability Review
CNY CPI y/y
CNY PPI y/y

GBP BOE Gov Carney Speaks

USD Core Retail Sales m/m
USD PPI m/m
USD Retail Sales m/m
USD Prelim UoM Consumer Sentiment
USD Fed Chair Yellen Speaks

Fund Your Account Today and Win an Apple iPhone 7 or iWatch Series 2!

Open or fund your Vantage FX account today and win an Apple iPhone 7 or iWatch Series 2. Click the banner to get started!

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Social

Free Daily Market Update

Live Spreads

SymbolBidAskSpread

Spread

Sign up to the latest forex news and daily FX trading setups

Get started with a FREE $50,000 demo account