Prime Minister May narrowly avoided defeat on the Customs Bill. Brexit concerns and the stability of May’s leadership are weighing heavily on the GBP. Renewed strength in the USD and a short setup in the GBPUSD enabled our entry, risking 20 pips for a potential 70 pips to our daily target at 1.3180. Price moved steadily down before bottoming early in the U.S. session leaving 2 candles with long lower wicks. The move up closed our trade… which had already extended past our daily target.
Fed Chair Jerome Powell today confirmed 2 more rate hikes are on the table for the U.S. this year. The effects of tariffs is not yet clear for the economy. Overall, USD strength is pervasive in the majors. My preference will continue to be to short the EURUSD and GBPUSD at this stage, as setups appear.
Good luck with your trading!
