The market appears to have turned its focus away from selling the USD this week, despite the rhetoric between the U.S. and China. On Monday the USD sold off and then bounced and has shown strength each day since.
The GBP remains mired in British political uncertainty and continues to offer short setups as it trends lower. On Wednesday an entry short was found risking 16 pips for a potential 54 pips to our daily target at 1.2845.
On Thursday we were able to risk 15 pips for a potential 57 pips to our daily target at 1.2773. Both trades were very similar and most major pairs are showing very familiar trading patterns once again.
The U.S. dollar index is approaching 98.00 today – where it has struggled to stay higher recently. It would not be unusual for it to pull back a bit tomorrow, if risk off sentiment resurfaces. The market will also be concerned about conflict between the U.S. and Iran escalating.
Good luck with your trading!
