Michael Bridgman

After 2 days of being basically flat the USD moved higher today.  The GBPUSD continued to trend downward and a nice short setup occurred early in the U.S. session. Risking 15 pips for a potential 68 pips to our daily target at 1.2825 we entered short after a 3 candle reversal pattern.  Price moved lower and as a long lower wick appeared just after the European close, we tightened our profit stop and the trade was closed.

Although the USD was relatively strong today, money flows were toward safety as the USDJPY moved down, as did the U.S. 10 year yield.

A number of economic news releases are scheduled on Friday for Britain, Canada and the U.S.

Good luck with your trading!

The GBPUSD moved lower today during a week light on economic news drivers.  The 1.3000 level gave way last week despite the rate increase in Britain.  Although 1.3000 may be re-tested, this pair looks like it may be headed lower to my eyes.

We took an early entry short as there were no economic releases for the U.K. scheduled.   Risking 12 pips for a potential 50 pips to our daily target at 1.2885 and with very clear charts, the pair had downside momentum.  Price tested its Asian session low before descending and moving sideways for 2 hours, then dropped and closed beneath our target.  We tightened our profit stop for 2 more candles and our trade was closed.

It’s nice experience a good size move in August despite the USD going sideways the past couple of days.  Some of moves may be a little exaggerated due to less liquidity and volume during this prominent holiday month, but for those of us not on holiday, it’s fun trading.

Good luck with your trading and happy holidays for those that can get away at this beautiful time of year.

 

The yen ran into some selling yesterday after the Bank of Japan’s comments.  My bias remains to short the euro and today I waited until the U.S. session got underway to short the EURJPY expecting it to recover from yesterday’s move up.  The setup required a 14 pip stop loss for a potential 52 pips to our daily target at 130.23.  Price made it’s way down into the London Close where we exited the trade 10 pips short of our target.

 

Thursday will be very important for the GBPUSD as the market has priced in a rate increase by the B.O.E. and if Governor Carney doesn’t deliver the pair may move lower to test the 1.3000 figure.

Keep in mind during August, volumes are much lower due to holidays, but that doesn’t negate lots of trading opportunities.

Good luck with your trading!

 

The market has priced in a 90% probability that the Bank of England will raise the interest rate on Thursday.  Expect the the GBP to be active this week in advance of the announcement, as we move into August trading.  With lighter volumes price can be more volatile and seemingly appear to be erratic.

Today we waited for the first round of U.S. economic releases before taking a short on the GBPUSD.  We entered with a 21 pip stop loss for a potential 43 pips to  our daily target at 1.3098 with a slightly stronger USD today than yesterday.  Price had clearly rolled over closing below yesterday’s high and was heading to test its Asian session high…which is retested a couple of times before moving lower.  As it headed to test its Asian session low, it spiked lower… through our daily target, the 1.3100 figure and right through yesterday’s low, then abruptly pulled right back up.  We closed at our daily target on the bounce upward.

Be careful on days of USD weakness as these are not likely to last in my opinion.  The U.S. economy is very strong and in President Trump’s words…”the envy of the world”.

Good luck with your trading!

 

After progress was made with trade tariff talks between the U.S. and E.U. yesterday, the USD was able to strengthen today against the majors.  As the GBPUSD continued to close beneath its Asian session lows leaving 2 bearish candles, the second of which had a long upper wick, a short was taken risking 13 pips for a potential 66 pips to our daily target at 1.3112.  Price moved lower and we locked in profit as it moved down.  We were closed as price spiked up hitting our profit stop after our second move lower.  The markets have been very volatile and I believe it is prudent to be more conservative locking in profits that to give them back.

There a few U.S. economic news releases early in the U.S. session to be aware of tomorrow including the Advance GDP q/q.

The GBPUSD will be interesting to watch as the market continues to expect a rate increase in the U.K. next week.  If this is not the case, will we see it plunge below 1.3000 ?

Good luck with your trading!

 

The markets were appearing apprehensive in advance of the Trump-Juncker meeting today regarding the tariffs between the E.U. and the U.S.

With the equity markets, USD and U.S. 10 year yield all down early in the U.S. session, the idea was not to trade the EURUSD short due to potential volatility, but to trade the EURJPY short as money flows moved to the yen.   The uncertainty in advance of the meeting was not helping either the the Euro or USD.

Both the EURUSD and the EURJPY set up nicely.  Risking 13 pips for a potential 46 pips to our daily target at 1.2942 we opted for the EURJPY short. We removed the risk from the trade quickly and continued to tighten our profit stop as price moved lower.  In just over an hour price moved down to our target and closed our trade.

On Monday, my least favourite day to trade, a short in the GBPUSD stalled at its Asian session low for a modest return.

The news of Prime Minister May taking personal charge of the Brexit negotiations (“soft Brexit”) with the E.U. may help market expectations but uncertainty  continues to weigh heavily on the sterling.

Good luck with your trading!