GBPUSD short
Updated
The market as been really quiet over the past month or so- here is a small trade I may consider in the morning. We have a short bat on the pound-dollar. Price is reaching a level of resistance where price has recently bounced (see below). The Support/Resistance zone drawn using the black horizontal lines is the area in which I would be looking to enter into a position.
As of 09:30 London time I will await the release of the UK Net Consumer Credit and Mortgage approvals. Both consensus are expected to be lower than last month. My entry will depends on the release compared to consensus. An increase in GBP money supply would also slightly decrease the pounds overall value. USD GDP is expected today with no expected change forecasted from the previous release. Both initial AND continued jobless claims are expected to drop also, which would bode well for the dollar.
Due to the nature of this trade, the Shark, I am not able to predict the ideal entry (this can come anywhere between 88.6% retracement and 113% extension of the AX wave. My TP, however, will always be the 50% retracement level of the CD wave. Stop loss will be above the resistance level (around 1.305) but must always equate to at least 2:1 risk, ideally 3:1.
Keep an eye on this on!
Shark Ratios
C: 1.13-1.618
D: 1.618-2.24
xD: 0.886-1.13
As of 09:30 London time I will await the release of the UK Net Consumer Credit and Mortgage approvals. Both consensus are expected to be lower than last month. My entry will depends on the release compared to consensus. An increase in GBP money supply would also slightly decrease the pounds overall value. USD GDP is expected today with no expected change forecasted from the previous release. Both initial AND continued jobless claims are expected to drop also, which would bode well for the dollar.
Due to the nature of this trade, the Shark, I am not able to predict the ideal entry (this can come anywhere between 88.6% retracement and 113% extension of the AX wave. My TP, however, will always be the 50% retracement level of the CD wave. Stop loss will be above the resistance level (around 1.305) but must always equate to at least 2:1 risk, ideally 3:1.
Keep an eye on this on!
Shark Ratios
C: 1.13-1.618
D: 1.618-2.24
xD: 0.886-1.13
Note
It would not be unreasonable to suspect the resistance level to withstand a retest going into the market open.
Trade active
Short position opened @ 1.2965TP 1.28
SL 1.305
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