Michael Bridgman

The GBPUSD is trending lower again and a failure to get above a critical level today near 1.2960 created a short entry…also ending its retracement wave higher.

The trade required a 15 pip stop loss for a potential 61 pips to our daily target at 1.2888. Price continued lower as the U.S. session got underway and the markets appeared less focused on the impact of tariffs.

The pair found buyers just above the 1.2900 level and our profit stop was triggered.

It looks like it could be active week.

Good luck with your trading!

The markets have been waiting for a positive end to the U.S. – China trade talks, but the drama continues and the sentiment is “risk off” today.

A currency pair that is useful for gauging risk is the Australian dollar Japanese yen. The Aussie being a commodity currency and the yen being a safe haven currency.

In the current political climate, with the disappointment from the lack of progress in the U.S. – China trade talks, the market has been scrambling for safety since President Trump’s tweets from Sunday a week ago. As tariffs increased on Friday for China, it is no surprise that China is retaliating against the U.S. – particularly in light of further comments made by President Trump since. The markets were expecting progress and lead to believe that an agreement was near. The markets have taken a big step back now and riskier assets continue to be sold.

For a Monday it was pretty exciting and almost any pair was easy to trade.

We entered the AUDJPY short risking 12 pips for a potential 42 pips to our daily target at 76.08. Price had already lured the breakout traders in at the London open and stopped them out with a pullback. We entered hoping to be well into profit before the U.S. open. Protecting our profit as price descended and closing the trade at our daily target worked well. With the faltering USD it appeared that we could have stayed in for longer but tomorrow is another day.

The USD has been weakening this past week, but so far the DXY has held above 97.00. The U.S. economy continues to be very strong and although the news is disturbing for the markets at the moment, this too shall pass.

Good luck with your trading!

British political turmoil continues and a Brexit solution still appears to be far away.

As the U.K session got underway, price moved down to test yesterday’s lows and bounced upward to test its Asian session low. Price was unable to close above this level and and short was taken risking 17 pips for a potential 63 pips to our daily target at 1.2978.

Price moved lower but could not penetrate the big figure at 1.3000 and drifted sideways going into the U.S. session overlap. Price eventually closed beneath 1.3000 and immediately found buyers and continued to close back above this very important level today. We closed the trade after 3 candles higher.

The next couple of days could be quite volatile for the USD as the U.S. – China trade talks continue tomorrow in Washington. President Trump’s threat of 25% tariffs for China pending for this Friday, may or may not come to pass, depending on how the talks go.

Good luck with your trading!

The daily ranges of the major currencies have been very subdued as the markets await the U.S. – China trade talks outcome. There had been optimism that an agreement would be completed this week, but President Trumps’ Sunday tweets have changed the likelihood of that happening.

On Monday there were major sell-offs in the stock markets around the world… attributable to “the tweets”. Today we saw a continuation of risk-off sentiment and we shorted the USDJPY early in the U.S. session overlap as price headed below its Asian session low.

The trade required a 10 pips stop loss for a potential 28 pips to our daily target at 110.29. Price moved close to our target and we exited at the U.K. close for a modest gain.

The recent confined ranges have made most of my trade setups very modest in returns… anywhere from 8 to 25 pips. I tend not to bother posting these small trades as there is not much to be learned from them. The markets will pick up again but this is as quiet as I’ve seen them.

Be patient and selective and you will be rewarded.

Good luck with your trading!

Today as the U.K. session got underway, the GBPUSD climbed above its Asian session high and tested Friday’s high. It then pulled back and went back and forth as the market digested Gov. Carney’s speech.

After it broke and closed beneath its Asian high, a short was taken risking 9 pips for a potential 53 pips to our daily target at 1.2884.

Price moved lower for one candle then tested its Asian high one more time before moving lower. We moved our stop loss to plus one and incrementally lower as price moved to test its Asian session low. Price went sideways in advance of the U.S. open and with news pending, we tightened our profit stop more. The news volatility closed our trade for a modest gain.

Monday trading tends to be a bit tricky as signals can be ambiguous. Today was no exception with both the USD index and gold being off.

Asian trading may be subdued this week as Japan is on holidays all week and China will be on holidays beginning May 1. Much of Europe will be off on May 1st as well.

Good luck with your trading!

The USD continues to strengthen and the GBPUSD continues to trend lower. Since the middle of March, this pair has been moving lower – making a series of lower highs.

Price tested its Asian session high today as U.K trading began and reversed lower. We entered short risking 8 pips for a potential 42 pips to our daily target at 1.2857.

Price moved lower testing and retesting its Asian low and yesterday’s low. After leaving a long lower wick, we tightened our profit stop – removing risk from the trade, and continued to lock in profit as price appeared to stall. The trade was closed in advance of the U.S. session. It’s very common to see a retracement wave in advance of the U.S. session as traders take profit, so it’s better to lock in profit than to give it back.

As the Brexit drama continues with delays and little progress, this pair continues to be a favourite of mine.

I will be away tomorrow.

Good luck with your trading and enjoy your weekend!