Today's Trade - Looking to sell GBP/USD

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Hey everyone,

Currency Pair: GBP/USD

Sentiment:
Short term bearish


Market focus:

In today's trade set up we will be focussing on short term selling opportunities on the GBP/USD.


Fundamentals:

Cable plunged yesterday as U.K. inflation slowed in September to its lowest level in 5 years. This has dampened expectations that the BOE will raise interest rates in the foreseeable future.


Technicals:


We have a nice confluence zone at 1.5955-1.5965. This should offer short term resistance for any pullback.


Stop loss could be placed at 1.6005


First take profit target: 1.5905


Second take profit target: 1.5790


Trade management: After target 1 hit stop loss could be moved to breakeven

P.S - If you want to learn more about how I trade, check out this link below

http://www.forexpeacearmy.com/forex...e-trading-course-forex-pro-jarratt-davis.html

 
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mkmk

Recruit
Messages
2
Hi Jarratt,

Firstly, thank you for all your work.

My questions: are you still fundamentaly bullish on GBP? I mean in the long term (how long)? I have problems with interpreting latest data. On the one hand, the CPI was lower than expectations, but on the other hand it's still much better than in EU anyway. Today's Average Earnings Index is positive (as expected), Unemployment Rate is lower than expectation but Claimant Count Change is worse...
Sentiment is still extremely bearish and the rate bets are vanishing.
I'm specifically concerned about GBP/JPY because I'm still long there and I'm losing my conviction for GBP...

BR,
Michal
 

Knight_Rider

Private, 1st Class
Messages
45
Goodness me it has drop 300 pips today and a total of over 1000 pips and it hasn't hit your SL?

What level are you long?

Hi Jarratt,

Firstly, thank you for all your work.

My questions: are you still fundamentaly bullish on GBP? I mean in the long term (how long)? I have problems with interpreting latest data. On the one hand, the CPI was lower than expectations, but on the other hand it's still much better than in EU anyway. Today's Average Earnings Index is positive (as expected), Unemployment Rate is lower than expectation but Claimant Count Change is worse...
Sentiment is still extremely bearish and the rate bets are vanishing.
I'm specifically concerned about GBP/JPY because I'm still long there and I'm losing my conviction for GBP...

BR,
Michal
 

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Hi Jarratt,

Firstly, thank you for all your work.

My questions: are you still fundamentaly bullish on GBP? I mean in the long term (how long)? I have problems with interpreting latest data. On the one hand, the CPI was lower than expectations, but on the other hand it's still much better than in EU anyway. Today's Average Earnings Index is positive (as expected), Unemployment Rate is lower than expectation but Claimant Count Change is worse...
Sentiment is still extremely bearish and the rate bets are vanishing.
I'm specifically concerned about GBP/JPY because I'm still long there and I'm losing my conviction for GBP...

BR,
Michal
Hey mkmk,

I am still fundamentally bullish on the GBP, the latest data has just set back the markets expectations for a rate hike - this is what is causing the bearish sentiment on the GBP at the moment. In regards to GBP/JPY - the reason this has fallen so hard is also because of some mild JPY strength caused by safe haven flows, as global growth fears continue to remain on the forefront, bear in mind that this JPY strength is also sentiment, so it will fade away in time.
Just be careful as safe-haven flows can be quite aggressive, hope that helps!

Jarratt
 
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mkmk

Recruit
Messages
2
Goodness me it has drop 300 pips today and a total of over 1000 pips and it hasn't hit your SL?

What level are you long?
I've entered around ~176.6 and then ~173.3. Didn't place stop loss since I didn't see fundamental change in the situation. Although, I partially closed my position with lost.


Hey mkmk,

I am still fundamentally bullish on the GBP, the latest data has just set back the markets expectations for a rate hike - this is what is causing the bearish sentiment on the GBP at the moment. In regards to GBP/JPY - the reason this has fallen so hard is also because of some mild JPY strength caused by safe haven flows, as global growth fears continue to remain on the forefront, bear in mind that this JPY strength is also sentiment, so it will fade away in time.
Just be careful as safe-haven flows can be quite aggressive, hope that helps!

Jarratt
Thanks for confirmation Jarratt. I had similar conclusions about last move. I just wasn't sure if I missed something really fundamental.
About safe haven flows - it's an interesting topic. Maybe you can consider this as one of your Q&A video? Why and how exactly geopolitcal situation affects currencies like JPY or CHF. CHF is more logical to me, but why JPY I still don't understand. Moreover, since in forex we have mostly speculators, why they care so much about buying fundamentaly weak currency in such situation?
 
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shogunfx

Sergeant
Messages
260
Today's results again Long GBP crosses. No fundamentals involved, only technical s, 100 pips total.

100 pips.png
 
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