Short from 1.3228...
Aggiornato
Despite several attempts to break back below the 1.32 handle, the British pound ended the day clocking a fresh high. After the latest round of FOMC meeting minutes, H4 price crossed swords with a nearby supply marked at 1.3250-1.3231, which happens to be positioned within the lower limits of a daily supply base coming in at 1.3291-1.3233. Given that both aforesaid supplies demonstrate strength (check out the bearish momentum from the bases), the team remains wary of the nearby 1.32 level, as a sell from current price offers less than 30 pips of free space until 1.32.
Placing stops above the H4 supply is an option and would allow you to record reasonable risk/reward should price halt at 1.32. However, at the same time, you open yourself up to a potential fakeout since daily price may want to test the upper edge of its supply!
Suggestions: On account of the above information, and the fact that weekly price shows room to trade as far south as demand at 1.2589-1.2759, we have taken a SMALL short position @ 1.3228 with a stop-loss order set at 1.3252 (24 pips). We’ll look to reduce risk to breakeven if/when price connects with 1.32 and also consider taking some profit off the table.
Data points to consider: US PPI m/m and US weekly unemployment claims at 1.30pm; FOMC members Brainard and Powell take to the stage at 3.30pm GMT+1.
Placing stops above the H4 supply is an option and would allow you to record reasonable risk/reward should price halt at 1.32. However, at the same time, you open yourself up to a potential fakeout since daily price may want to test the upper edge of its supply!
Suggestions: On account of the above information, and the fact that weekly price shows room to trade as far south as demand at 1.2589-1.2759, we have taken a SMALL short position @ 1.3228 with a stop-loss order set at 1.3252 (24 pips). We’ll look to reduce risk to breakeven if/when price connects with 1.32 and also consider taking some profit off the table.
Data points to consider: US PPI m/m and US weekly unemployment claims at 1.30pm; FOMC members Brainard and Powell take to the stage at 3.30pm GMT+1.
Nota
Took a small loss on this one - onwards and upwards!
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