Where #Fundamentals #Technicals Dictates Price Direction

The recent UK negative reports have sent #CABLE declining back towards the 1.4180 session low in the US session last Friday as a result of a price recovery for the #USD index @94.85 from the Jobs data that sent it down @93.42 low. The wide trading range as we made mention, as been the norm where price swings back and forth in both directions has been maintained.

Stretching towards the next couple of weeks ahead, both #FED and #UK_BREXIT will provide the increase in volatility. This will prove to be in part of the end of the 2nd quarter trading that would pave the way towards the opening of the 3rd quarter which likewise provide a glimpse of the true direction. As of CABLE, expectations of a +/-9% -to- +/-35% price swings are well within its wider range in the next two weeks to follow.

Although, MegaTrade101's primary outlook remains neutral to bearish for CABLE, the strategy for these event risks would be played along with Futures &  using Options as an indicator for Spot #GBPUSD; in sync with the US Dollar Index securely positioned from its previous low as a buffer for any adverse price action. With the rest of the portfolio would weigh heavy towards equity indices with the #SP500 more favored than the rest.

In essence, a three-currency play + one  both in #Spot, #Futures, #Options & #ETFs markets would be applied as a strategic plan of action in dealing with these risk events heading towards the end of the 2nd quarter. The advantage of knowing how to play the financial markets not only with Spot; with Futures & Options provides a distinct edge in spreading risk while netting a probable positive result only when done right and executed with the utmost market timing.

The market behavior and price action would be well monitored next week as it would provide a glimpse of the prelude sentiments in the market place before the start of the new quarter trading. We do hope that these market insight would be beneficial for other traders moving forward.