The GBP is reaching multi-year lows. As political uncertainty regarding Brexit continues, the GBP will be under pressure and rallies will offer further shorting opportunities.
Today after a second lower high an entry short is taken with an 18 pip stop loss for a potential 108 pips to our Target 2. Price moved down to test and retest the Asian session high before dropping right through yesterday’s high. We gave yesterday’s high a little wiggle room to retest but price bounced off a very significant level in the 1.3928 area. Buyers entered reversing the market causing our profit stop to be hit.
Option pricing for the GBP is now higher than it was before the Scottish referendum vote last year. Keep the Sterling on your trading radar as it may test 2001 and 2009 lows in the near term.
Good luck with your trading!
Back tomorrow if we find a trade.