By looking at recent data and press releases we can reach the conclusion the market tends to shrug off bad US data (also downplayed by the Fed as of late) and is very sensitive to bad inflation data from the UK.
By looking at the calendar for the next days we spot an opportunity for a short. There should be no reason for price to go above the resistance a zone around 1.52, and it would be a good place to place our short, provided we continue seeing a decline in quality of UK inflation-related data.
Alternatively, a less risky move would be to wait for worse than expected US unemployment claims, which would probably cause a small and temporary rally which, as long as UK data remains bad, would give us a good price to sell at.
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Fundamentals are a very complex subject. I'd appreciate any comments regarding this analysis.
By looking at the calendar for the next days we spot an opportunity for a short. There should be no reason for price to go above the resistance a zone around 1.52, and it would be a good place to place our short, provided we continue seeing a decline in quality of UK inflation-related data.
Alternatively, a less risky move would be to wait for worse than expected US unemployment claims, which would probably cause a small and temporary rally which, as long as UK data remains bad, would give us a good price to sell at.
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Fundamentals are a very complex subject. I'd appreciate any comments regarding this analysis.