As the U.K. continues to lift covid related restrictions, the delta variant case numbers are increasing there and Prime Minister Johnson is reported to have entered into isolation protocol. Naturally this doesn’t bode well for the GBP.
A short was taken today early in the U.K. session after a lower high formed… risking 22 pips for a potential 61 pips to our daily target at 1.3586.
Price continued lower with a brief two candle pullback just before the U.S. session got underway, then continued lower to our target where we exited.
The GBPUSD and USDCAD continue to be my current favourite pairs to trade. I haven’t been posting recently because I haven’t had any trades that have run until today. Most trades of late have only been in the 10-20 pip range. These trades add up over time, but are not too exciting to chart or learn from.
The USD continues to move higher since Fed Powell’s hawkish comments in June. A continued move higher in the DXY could test the November 11, 2020 high of 90.20
Good luck with your trading!
