Avoiding potential volatility today during Fed Chairman Powell’s testimony, we chose to concentrate on the EURGBP as confusion regarding Britain’s Brexit weighed on the GBP.
An entry long was taken risking 15 pips for a potential 44 pips to our daily target. Price was reversing upward and sustained its momentum moving through its Asian low and through its Asian high. As price tested and retested an important level from the daily chart, we exited just in advance of the U.K. close.
The USD lost its upward momentum today unrelated to Chair Powell’s comments. It was President Trump’s tariff talk which created a lot of uncertainty for the markets resulting in both USD weakness, and the stock indices plunging.
The GBP could be quite volatile tomorrow with Prime Minister May speaking and subsequently Governor Carney.
The Euro too will be interesting as traders will be very interested in the SPD vote in Germany this weekend as well as the Italian election outcome.
Good luck with your trading!
