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.”
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.
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
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:
…but really I am.
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
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Dane Williams – @VantageFX
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