Cable's prevailing bearish channel dominates the overall trend direction. However, interim price recovery with the traditional up/down swings after failing to move past the 1.3180 - 1.3400 range levels before this decline. As the expanded time cycle have followed sentiments post UK vote on Brexit.
Hardcore Brexit sentiments prevails as a good support for the USD to maintain above its 95.05/10 levels for the start of the new trading month and the last quarter of the year. Let's see how these market reacts in sustaining a relative support for the stocks moving forward this week as currency volatility returns in the European markets. #CABLE' low in late Asian trading @1.2844 after failing @1.3120 as stated.
Revisitng our June 14' 16 chart from our trading journal defines a directional trend call is still valid as the overall sentiment of the market post BREXIT. Would it take another Post BREXIT market sentiment to push the USD back to a good rally? And the end-result for a real serious decline for the Pound can now be seen nearing the 1.2770 levels again.
Although, the 1.2845/50 and 1.2550 range would provide some interesting moves for a tug of war positioning. Will have to see and watch how market reacts towards the next few weeks of the 4th quarter 2016. An 'Effective Strategy between #CABLE & #EURGBP' cross rate has again proven its true worth until today as a counter trade strategy. Applying these strategies properly is another story. Timely execution is necessary along side a true directional trend and conviction of market analysis.
Revisit: #TSOT - CABLE - GBPUSD Strategy
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#GBPUSD is trading lower @1.2774 with a 1.2755 low have been the primary support for the USD other than the ISM data providing another lift. Meanwhile, spill-over effects have driven the #EURO below the 1.1200 levels in a gradual pace giving a continued support for the #EURGBP cross rate a renewed high @0.8755 to this writing.
ReplyDeleteThis is where #CABLE fits into the equation, when we made mention of a 3 plus 1 whenever called for which reflects a cross trade strategy insuring the gains made by protecting any adverse changes in the market. On the other hand, cashing in on the gains of the 3 trade positions can be more sensible as the end of the quarter has just been concluded based on the schedule of trade position adjustments.
ReplyDeleteAll told the 'Sequence of Trades' related executions since the month of May has been followed to the letter based from the changing market conditions
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