All ranging still as another week begins
Monday 21 October 2019
Further to my Brexit vote update last night we've duly been ranging across the board in FX pairs, not just GBP.
The US Dollar has a generally softer bias as do commodities and risk, to a lesser extent, but we're still going nowhere in a hurry as the uncertain global backdrop continues. All the more reason to ignore the noise, identify ranges and pick your entry/exit levels without being too greedy. Something I always preach and a key lesson which I help further with in my 1-2-1 mentoring sessions.
As for what happens next in the sorry Brexit saga the Beeb has a good summary here https://www.bbc.co.uk/news/uk-politics-46393399
GBPUSD still continues to provide good two-way pips regardless of your trading bias but finding buyers again as European trading gets underway. Some profit taken now on re-sells in Asia above 1.2920 but caution still needed both sides of the coin. A few offers at 1.2980-85 now history as we look to test the big 1.3000 again. Expect stops through there if we break convincingly to test the next layer of sell interest at 1.3020-30.EURGBP has also enjoyed two-way business once again and remains 0.8575-0.8675 for the moment. GBPJPY also continues to see good two-way trading but still underpinned amid the varying GBP/risk sentiment combo and rallying again as I type.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit uncertainty but always happy to buy back in the dips still. I repeat that this could still have a number of outcomes and remains pure guesswork/conspiracy theory at this time. Equal case for GBP longs still as I've been highlighting for a number of days now.
EURUSD remains underpinned helped some risk-on EURJPY demand and inherent EURCHF support to temper the renewed EURGBP supply and we've now posted fresh highs in this rally of 1.1173.USDJPY still remains tightly bound too amid the variable USD and risk sentiment but underpinned again after holding 108.30.USDCHF continues to slide as EURUSD rallies but still finding some dip demand with EURCHF underpinned.
AUDUSD is still enjoying the general USD supply and some AUDJPY demand and now posted fresh recent highs of 0.6877.USDCAD has broken down further to test 1.3120 helped by the general USD selling and some CADJPY demand.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility, or how to make best use of the order boards and expiries that you might need some further help with.
Congrats to the Shrimpers for getting an away point on Friday night although it should have been 3 but bigger congrats to the English and Welsh rugby union boys who performed magnificently to reach the WC semi finals. Bring on the All Blacks!!
Have a good day/week out there one and all.
Interbank Rate 08.24 BST