What does British pound prepare for us? Analysis of weekly prospects for the GBP/USD

A good start of the trading week to everyone. With best wishes, forever your reliable advisor Andrew Green.

I would like to start the week with a good note. And, as my good friend says, the millionaire: “There is no better note – than the sound of a rustling banknote.” This joke once again confirms that a sense of humor in making money is by no means an interconnected concept. )

By giving trade recommendations on the foreign exchange market, I would like to start from the end:

Trade recommendation – Short SELL (with cloning).

Now, let’s begin with a fundamental analysis.

The main event of the passed weekend was the meeting of the UK-France Summit. Focusing on the possibility that the trade agreement that can be signed upon the withdrawal of Britain from the EU will be “by agreement”.

Bringing a certain line under the remarks of Emanuel Macron (the President of France), in general, there is even a very optimistic outlook for a smooth exit of Great Britain from the European Union.

These statements support the positive attitude of the finance ministers of Holland and Spain, who last week supported the need to preserve the closest possible relations with Britain after BREXIT.

The importance of the formation of such arrangements for the future fate of the British “cable” is obvious, as long as the further membership of the UK in the WTO (WTO – World Trade Organization) depends on them.

This positive course will certainly give some support for the “British” in tandem with a single European currency, but what will be in tie with the American? The main news of the weekend is the Stop of the work of the US government. Not accepting the country’s budget in accordance with the deadlines set by the rules, the US government stops the work of most of its units. Such a stop, of course, is a very important event, but not the first in history. The last stop was in 2013 and lasted 16 days. Who remembers the events of those times? The events of that stop were tied to the agreement of the project of social insurance of the unprotected strata of the population, so called “Obamacare”. Having made a small analysis of the behavior of the dollar at the time of such stops in the past, we can see that after a rather insignificant sharp price change, a further pullback followed.

At the time while this article has been written (Sunday 21/01/18 20:00 UTC), there is already the first data from the opening of the market this week – 1.3880 (1.3844 – closing of the week Friday 19/01/18 23:00 UTC). I would not call this a “significant” jump. Of course, more important is the opening of the weekly trading of European and American markets (Sunday 21/01/18 22: 00-23: 00 UTC). But in general, I do not expect any kind of extreme jumps.

As for me, the fundametl is enough. We pass to the section of technical analysis. Let’s start with the daytime timeframe (Figure 1). And what do we have here?

The triangle (highlighted in yellow) was clearly developed, formed by resistance/support lines of the weekly and daily timeframes. The potential of its development coincides with the psychologically strong level of resistance in the zone of 1.4000, and now I am focused on it. I see the main potential for trading for sale from it. But be very careful, since trade for sale in the current medium term contradicts the main sentiments of the market. It contradicts the trend. But this is the point.

If you are not familiar with the trade against the trend, then we offer to your attention individual training courses, where you can learn the tactics of short-term trading in any market conditions.

The tactics of “cloning”

After your transaction is triggered by TP, you immediately expose its clone to the same parameters as the original. Until the price is rolled back from the order’s validity by more than 100 points, or until the SL is triggered by one of the clones.

Examples of transactions:

• conservative option:
  SELL limit 1.4020, SL 1.4050, TP 1.3970
• aggressive option
  SELL (from the point of market opening, expected 1.3900-1.3880), SL 1.3950, TP 1.3840
  averaging – SELL limit 1.4020, SL 1.4050, TP 1.3970

I love this moment when the market opens. You always expect surprises from it.

You can just wait for chance to change everything in your life or you can create opportunities by yourself. Do not wait! Build your own life.

Andrew Green