GBP/USD Update: Trading Brexit (FIST Analysis)
Happy Tuesday traders, here is an update on our GBP/USD trade that was closed in profit today.
FUNDAMENTALS
News that the UK has reached an agreement in principle with the EU led to a sharp spike in GBP pairs. However, the liquidity area between the 50% and 61.8% Fib level keeps holding. An agreement in principle is not a trade deal yet!
INTERMARKET
2-year yield differentials are still looking depressed, pointing at further weakness in the pair.
SENTIMENT
Besides the bearish positioning of large market players in GBP, the option market also shows large demand for GBP/USD puts, signaling that markets protect against downside risks. The pound is also the worst performing currency of the current trading day, despite the seemingly positive Brexit news.
TECHNICALS
I have faded the bullish spike around the 50% retracement level and already locked profits.
Still, there is further downside potential, with the first target at 1.3224, and the second at 1.3138.
If you find this post useful, please hit the "LIKE" button and let me know what you think about the pair in the comment section below! Thanks
FUNDAMENTALS
News that the UK has reached an agreement in principle with the EU led to a sharp spike in GBP pairs. However, the liquidity area between the 50% and 61.8% Fib level keeps holding. An agreement in principle is not a trade deal yet!
INTERMARKET
SENTIMENT
TECHNICALS
I have faded the bullish spike around the 50% retracement level and already locked profits.
Still, there is further downside potential, with the first target at 1.3224, and the second at 1.3138.
If you find this post useful, please hit the "LIKE" button and let me know what you think about the pair in the comment section below! Thanks
Trade closed: target reached:
Target reached on the pip!
