Short

GBPUSD: I'll risk looking like an idiot...

Updated

...I think GBPUSD is ready to resume the downtrend here. It has significant downside, all the way down to $1. I'm entering shorts at market open, seeing it as a very low risk trade idea.
Exposing 0.5-1% of the account, with a stop just above the recent swing high is a good idea overall.

Cheers,

Ivan Labrie.

Note

China's attack on the dollar boosted all currencies and assets priced in dollars, except for BTC naturally, and it appears like that nefarious influence is receding.
You can see the rally in the pound matched the PBOC shock timing, so, as with everything else that mirrorer the yuan, it was only a short term distortion.

Down for the day, gapped down, looks like it'll keep going down.

Note

An extra piece of information and potentially a clue: relative strength!
Many USD pairs are down, yet USDGBP is up.

Note

Good to trail stops down, and even double the position.
Target on chart.

Note

Trail sl to 1.2175, and add.

Note

bloomberg.com/news/articles/2017-01-15/may-to-seek-hard-brexit-by-leaving-eu-market-says-sunday-times

We will see a selloff here and in the Euro I think.

I'll post my updated chart.

Trade closed manually

I'm hesitant now. I'd reccomend standing aside for a while.

IvanLabrie

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