It was a tricky week to find really good and productive entries. Brexit delays, headlines and rumours made for a volatile GBP and the EUR too.
Where are we now with Brexit? If there were an easy solution, Teresa May would have found it. As it turns out, Boris Johnson’s rhetoric about being out by October 31st with or without a deal is not likely to happen either. Instead he is opting for an election in the U.K. but that will require two thirds majority vote in parliament, in order for it to be called. It appears that Brexit will be delayed yet again, and any enthusiasm for being long the GBPUSD has run into some selling due to the stalemate.
Today the EURUSD moved up as London trading got underway then rolled over. A short was taken with a very tight stop loss of 7 pips for a potential reward of 42 pips to our daily target at 1.1074.
Price moved down as USD strength continued today. We tightened our take profit in advance of the U.S. session and closed the trade just above our target as the UK session ended for the week.
Next week, it will be interesting to see if the 1.1000 – 1.0990 levels can hold and if not 1.0950 – 1.0925 may attract some buying. Be careful around the figures.
Enjoy your weekend and good luck with your trading!
