After progress was made with trade tariff talks between the U.S. and E.U. yesterday, the USD was able to strengthen today against the majors. As the GBPUSD continued to close beneath its Asian session lows leaving 2 bearish candles, the second of which had a long upper wick, a short was taken risking 13 pips for a potential 66 pips to our daily target at 1.3112. Price moved lower and we locked in profit as it moved down. We were closed as price spiked up hitting our profit stop after our second move lower. The markets have been very volatile and I believe it is prudent to be more conservative locking in profits that to give them back.
There a few U.S. economic news releases early in the U.S. session to be aware of tomorrow including the Advance GDP q/q.
The GBPUSD will be interesting to watch as the market continues to expect a rate increase in the U.K. next week. If this is not the case, will we see it plunge below 1.3000 ?
Good luck with your trading!
