Disliked{quote} Tough to look for top or bottom when driven by fear, pound is being dumped even though fundamentals are intact. Or is this classic market herding? Ive closed most positions with a loss, only 2 running, I would probably get back in if there is a strong 4 hour candle. Cheers MRIgnored
So we have political uncertainty with short terms economic uncertainty - (compounded over the last few days by the new Chancellor removing the timeline for balancing the UK's books and in essence opening the door to another round of huge borrowing). Hence the move to aggressively sell the pound.
So with that backdrop in mind how do you trade sterling. In short, with reduced position sizes and reduced risk. It's going to be a bumpy ride - so don't stack up large positions and play the pivots with the probability in mind. Have realistic entry and exit targets and trade based on Price action.
GU is currently at S200 - not something you see every week. We have a 4hr pin bar though on GU rejecting R200, and a cross of the TDI (although not a particularly good one) so this could (not will) provide the basis for a short term up move in GU. You'll need to keep watching price action for confirmation of such a move.
I don't trade GU but this will help EG. From EG's perspective - price has hit R138 and rejected it on the 4hr chart. There is a very clear upward channel and EG is currently at the top of that channel. Harmonics would suggest a short term reversal / correction wave will come.
2