With Brexit in just over 10 months, internal squabbles continue for P.M. May regarding her plans to remain in the customs union longer if necessary as the question regarding the Irish border remains unresolved.
BOE Governor Carney in his recent statement has left the market thinking that a rate hike in August is below a 50% likelihood. Carney will be speaking throughout the week which makes the GBPUSD potentially very volatile. With price still below a critical level, we will continue to look for shorts…and of course listen to what Gov. Carney says.
Today a short was taken early in the U.S. overlap risking 17 pips for a potential 47 to our daily target at 1.3402. Without a strong USD today, the trade went back and forth before bouncing off its Asian low. Our profit stop was hit ahead of our daily target for a modest gain.
I will continue to look for high probability short setups on EURUSD and GBPUSD this week.
Good luck with your trading!
