The GBPUSD was not able to remain above 1.2500 today and as it began to move downward during the U.S. session overlap, a short was taken risking 25 pips for a potential 83 pips to our daily target at 1.2407.
Price moved lower and we took the risk out of the trade after the first candle…locking in some profit. Price then moved lower through its Asian session low and yesterday’s low, but failed to reach our daily target and we exited the trade just before the U.K. close.
My current bias is to look for short setups in the EURUSD and GBPUSD with USD strength. The USD continues to trade inversely to the equity markets. With a continued rise in unemployment numbers each week due to the coronavirus, the markets are in for a bumpy ride gong forward. Any shorts in the USDJPY with risk off sentiment should be cautious of a bounce near 107.00.
Stay healthy and safe and good luck with your trading!
