Pound underpinned but jury out still
Thursday 17 October 2019
It's been another roller coaster 24 hours for the Pound as the Brexit shambles unveils further but with the DUP casting doubts and EU summit beginning today there's good two-way business still for Pound pairs as the jury waits on facts rather than conjecture.More headlines a-plenty to come across the airwaves today and tomorrow but GBP looks underpinned still for the moment with various outcomes tending toward the bullish as far as the algos are concerned.
Elsewhere the US-China trade talks continue to make headlines but with yesterday's risk-off sentiment fading a little and Turkey's foray into Kurdish territory still in the picture.
GBPUSD continues to provide good two-way pips regardless of your bias and caution still needed both sides of the coin. We've seen a spike above 1.2860 and a retreat to 1.2748 as markets/algos continue their Brexit headline feeding frenzy.
EURGBP has also enjoyed the return trip once again and presenting 2-way pips but now capping at 0.8700 (GBPEUR support 1.1530) after lows of 0.8618 (GBPEUR 1.1602).GBPJPY continues to see good two-way business but still underpinned and and now posted fresh recent highs of 139.65 with support coming in around 138.50-60 amid the varying GBP/risk sentiment combo.
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.Yes the current hope/optimism still has to be respected as the madness plays out but I repeat that this could still have a number of outcomes and remains pure guesswork/conspiracy theory. Equal case for GBP longs still despite the sharp rally in the past week but risk reward fades the higher we go.
EURUSD remains underpinned helped some risk-on EURJPY demand and inherent EURCHF support to temper the EURGBP supply but we've failed into 1.1090 with large expiry interest there today. USDJPY still remains tightly bound too amid the variable USD and risk sentiment.USDCHF continues to find dip demand but tempered by EURUSD continuing to progress higher too albeit with EURCHF underpinned too.
AUDUSD found support from some better jobs data and AUDJPY demand but failed into 0.6800 once more with large option expiry interest again there today as I've warned all week. Now more at 0.6790 and 0.6775 very much in play too. USDCAD held around 1.3180 again helped by some CADJPY supply but softer USD and firmer oil prices helping to cap into 1.3230 again.
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.
Have a good day out there one and all.
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