British Pound has always traded with vigor, whether it’s going up or sliding down. It doesn’t like 5/10/15 pip moves. It will be either 50, 100 or 500. So what’s not to like about it for Forex traders ! 🙂 Well, only thing one needs to adapt to is its sudden change in fortunes, especially now when politics is in flux.
What a turnaround from our last trade idea blog where we were saying, GBP/USD is roaring to touch 1.40 ! LOL But hey, it’s trading and we trade what we see and not what we think it’s going to do. PM May’s gamble didn’t work out and to add salt on the wounds of Pound, yesterday Mr Mark Carney ( Bank of England Governr ) said that BOE is not going to raise rates soon. So to keep it simple ( like in the case of USD/JPY ), simply go with the central bank ! As we have said earlier, keeping it simple in Forex is the easiest way to be profitable. Rate hike means buy and rate cut means sell ! ( Of course there are caveats but this maxim works 7 out of 10 times – so good RRR 🙂
Ok, so until we smell the change in GBP/USD’s direction, selling the bounce will be the trade de jour. Current important resistance levels are 1.2650, 1.2700 and 1.2750.
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