Short GBPUSD Trading Idea
USD Bullish Rationale :
1. Optimism tax reform bill
2. It's been said that the market have fully priced in December interest rate hike but this "certainty" seems to ease investors in betting Dollar strength at the moment
3. Personally, I see no reason as of now to be bearish the dollar
GBP Bearish Rationale :
1. Continued uncertainty and MESS over the brexit divorce deal
2. Another mess over the Irish border
3. Lack of tier-1 event to help boost the Sterling today
Factors could invalidate the trading plan :
1. Positive development on the brexit divorce deal
2. Any geopolitical issues comes up such as the North Korean missile stuff etc etc
Levels to trade :
A. I would prefer if the price make another test on today's daily pivot. I will seek reversal signals or structural break and short the pair from here. The rationale of the target price (TP) is a) within the average daily range b) It has been tested and respected before c) Missed Pivot
B. In the event where price could pierce through the daily pivot, this level is where I would find technical reasons to short the pair such as reversal candlestick and/or structural break and/or the old fashion (but still effective if used properly : Moving Average crossover!). The rationale of the target price (TP) is a) within the average daily range b) It's potentially today's low
1. Optimism tax reform bill
2. It's been said that the market have fully priced in December interest rate hike but this "certainty" seems to ease investors in betting Dollar strength at the moment
3. Personally, I see no reason as of now to be bearish the dollar
GBP Bearish Rationale :
1. Continued uncertainty and MESS over the brexit divorce deal
2. Another mess over the Irish border
3. Lack of tier-1 event to help boost the Sterling today
Factors could invalidate the trading plan :
1. Positive development on the brexit divorce deal
2. Any geopolitical issues comes up such as the North Korean missile stuff etc etc
Levels to trade :
A. I would prefer if the price make another test on today's daily pivot. I will seek reversal signals or structural break and short the pair from here. The rationale of the target price (TP) is a) within the average daily range b) It has been tested and respected before c) Missed Pivot
B. In the event where price could pierce through the daily pivot, this level is where I would find technical reasons to short the pair such as reversal candlestick and/or structural break and/or the old fashion (but still effective if used properly : Moving Average crossover!). The rationale of the target price (TP) is a) within the average daily range b) It's potentially today's low
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