Pullback or reversal bound to occur soon or later much overbought.
Comment:
The whole town was talking and having optimism over the Brexit deal. Sentimentally market worked out for pound on Tuesday as the Brexit positive developments news were covering overall the internet news portal which pumped the bullish sentiment on retail traders for the cross pair GBPJPY blown above my golden sma ( 1 and half month period). Even though the Average Earnings Index + Bonus for Aug and U.K. jobs data were below the forecast (Quite bad) leaving the Claimant Count Change positive. The whole market was eyeing for pound pairs on Tuesday as BoE Gov Carney had speech plus BoE FPC Meeting Minutes which were enough to spark high volatile on all pound pairs and yes we can't deny it was "Sterling day!".
Comment:
Moreover from the European side "German ZEW Economic Sentiment, German ZEW Current Conditions, ZEW Economic Sentiment index, Industrial Production" was released positively supporting the economy of the European which help retailor to have bull bias on euro and as we all know euro is like a big bruh for sterling and they love to walk together (positively correlated currencies) which increased the power of two major counter currencies like sterling and euro to shake the whole market by knocking off the king ass (greenback). In this case, GU, EU, GJ, EJ were all bullish (this freaking highly volatile major and cross pairs had a range above 100pips last night) for those intraday traders who shorted the pound and were holding before the end of European session must have faced issues but talking about swing traders there is still some hope for retracement or even reversal as the stop-loss hadn't triggered after all those big upward moves from last night and trade is still alive. I assume it's all about Brexit development sentiment news which was in play for 70% of pound bullish move last day so if only the sentiment changes (and we know it changes like a girl changes her dress for every new party) then the pound will surely be even more perfect sell from this high on GPBJPY and risk to reward must be good for downside. The same goes for the EURJPY!
Comment:
The show is on still!
Trade closed: stop reached:
China’s commerce ministry said on Thursday that China hoped to reach a phased agreement with Washington as early as possible, and make progress on canceling tariffs on each others’ goods. Prime Minister Boris Johnson said that Britain and the EU had agreed on a “great” new Brexit deal and urged lawmakers to approve it at the weekend. Two major deals which used to shake the whole market has come into some point from the last couple of days which created whole market risk-on mode and the greenback (king) was devalued because of counterparts doing well as of good risk appetite in the market. It was quite fast entry though in our above trade which was position before the EU and UK released big surprise news and as risk sentiment changed in the speed of light via interest news portals around the global market our stop got smashed by price badly. Weekly R3 seems to be the strong resistance level and entry around that level would have some chances more than the above trade which had been executed.
Comment:
the weekend is all about. If the UK and EU get messed up again then probably a sweet pullback is bound to happen in this cross and price may have to fall below 136 IMO! Till then don't forget to have eye on this pair movement too! (Y)
