gbpusd bull trap
with the recent market divergence and dollar index on over sold levels, dollar is likely to gain and pound is likely to pull back after attaining 2024 high. Currency carry traders are going to pull out of gbpusd after a 5% rate from BoE and a 5% rate after fomc on dollar.
currency carry traders profit on difference in interest rates of different banks. Example gbp has a rate of 5% and jpy has a rate of >0.1% they are likely to take gbpjpy longs or usdjpy longs due to difference in bank rates. now back to our topic of gbpusd, the bank rates are equal that means currency carry traders will not profit.
on technical analysis we only watch todays candle what it will do, if it closes below the zone I have highlighted for you then we good to go you can enter. and remember to manage your risk.
on sentiments we have bulls sited at 1.31000 zone once market is below there average entry positions they will then become the liquidity.
in summary check on the zone I've highlighted for you, enter when conditions are correct and add more positions once below 1.31000
currency carry traders profit on difference in interest rates of different banks. Example gbp has a rate of 5% and jpy has a rate of >0.1% they are likely to take gbpjpy longs or usdjpy longs due to difference in bank rates. now back to our topic of gbpusd, the bank rates are equal that means currency carry traders will not profit.
on technical analysis we only watch todays candle what it will do, if it closes below the zone I have highlighted for you then we good to go you can enter. and remember to manage your risk.
on sentiments we have bulls sited at 1.31000 zone once market is below there average entry positions they will then become the liquidity.
in summary check on the zone I've highlighted for you, enter when conditions are correct and add more positions once below 1.31000
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