The relationship between the E.U. and Britain continues to be strained while the details of the divorce are worked out. The E.U. has cast doubt on whether this can be accomplished by year end – as desired by British P.M. Johnson.
While the GBPUSD bounces above and below the important 1.3000 figure, my preference currently is to fade rallies above and watch for buying interest as price approaches 1.3000.
Today as price moved down early in the U.K. session, a short was taken risking 15 pips for a potential 59 pips to our daily target at 1.2977. Our first target however was 1.3000…still giving us a better than 2:1 reward for our risk.
After price took out its Asian session low, our target was 1.3000 – an area where buyers have been entering. We tightened up our profit stop after the first attempt fell short and when price bounced a second time we closed the trade.
The major pairs continue to have moderate daily ranges with the GBPUSD being the most active pair.
The coronavirus continues to dominate the headlines as the market attempts to determine its financial impact.
Good luck with your trading!
