Today the GBPUSD moved higher going into the U.S. open. Similarly to yesterday, it then reversed with a large bearish engulfing candle and a short was taken risking 19 pips for a potential 71 pips to our daily target at 1.3752.
Price moved lower to test its Asian session high and remained just beneath this level awaiting the JOLTs job openings release. The result moved the pair through its Asian session low and yesterday’s low. As price continued down we protected our profits by moving our profit stop lower.
We fell just short of our target price with a candle leaving a long lower wick. We closed the trade to avoid any retracement going into the last candle of the European session… which can be volatile especially when an FOMC statement is pending.
Whether the USD strength continues will be determined in part by Fed Powell’s statement today. In particular any hints of tapering, interest rates hikes and changes to the Fed’s inflation outlook.
Good luck with your trading!
