Indicators to check BEFORE GBP Shorting for confirmation
I also suggest using two other key pieces of information BEFORE shorting GBP.
1. Use USDJPY as a measure of market risk appetite and stability
- As you can see below UJ has traded with a tight 38pip range vs GBP$ at 180pips. Therefore we can use UJ as a measure of stability and risk appetite:
1)...
Well last night U/J broke below a support zone, and is now retracing , looking to go short at 118.85-.90 with a stop at 76.4% Fib. If 76.4% is broken I will be looking for long opportunities but for now U/J is still a sell for me personally. Profit target at the 161.8% extension zone. Market sentiment supports xxx/JPY shorts with US treasuries dipping below the 2%...
1) SP500 on ALL TIME HIGHS, MEGAPHONE pattern, GLOBAL RISK OFF
2) Investors confidence extremely BULLISH
3) YEN INDEX is technically EXTREMELY OVERBOUGHT, ABOVE 2 STANDARD DEVIATION BOLLINGER BANDS on daily basis
4) USD is EXTREMELY OVERBOUGHT aswell as US growth has been EXAGGERATED. Wage growth is WEAK, and INFLATION EXPECTATIONS are really WEAK, so FED...
