Cable – The only way is down on GBP, for now.

Some encouraging GDP data out of the UK to today. Preliminary GDP Q3 YoY was expected 2.1% and came out 2.3% and the QoQ GDP was expected 0.3% and came out at 0.5%. So naturally we saw movement in the FTSE and cable. The GBP took the news initially well spiking the GBP against the USD to 1.2271. However the overriding ‘Brexit’ fundamentals means that no rally ever seems to last long.

The H1 candle where the most spiking action happened was a prime candidate for a Fibonacci retracement. This is an over extended candle which in my reckoning means the 80% of the time it will retrace to 50% and if this is the case and we close below we are almost 90% sure it will make a new low. Which cable did below 1.22030.

GBP

The short term relief rally I the GBP simply cannot over turn the over whelming ‘fear factor’ of what will happen post article 50 being triggered in Q1 2017. There has been rumors of UK banks looking to relocate, May’s own leaked tapes of her going against her own advice and the uncountable division that Brexit has caused in the country, the government and the all-important city of London.

Now the GBP reach 31 year lows, it is not the time to think where or when will it bounce. Every conceivable level is a potential break point. The inevitably will be a floor in the GBP as the UK is still a strong economy and the option of safe haven currencies it rapidly diminishing globally. It was be a brave investor to pick to lows long term.

GBP

In my view I am selling into the new lows and looking for key psychological levels to be broken before buying short dips upwards. A key level at 1.14252 a 161.8% Fibonacci expansion level is one area that I think is good to buy 2nd time around. 1.15 will be a natural target to break but should offer longer term traders some option to start to build a position of future value.

Check out My Showcase Page on My Trading Buddy and See how you can Get, Free 1:1 Mentoring with me, Skype Trading Support and Much More, Just Click-the-button.-See-what-happens.-I-dare-you

Steve Ruffley

Interactive Chart: We have included an interactive chart below where you can keep an eye on the GBPUSD, Pop out the chart, change time frames and use drawing tools and indicators.  You can do all your analysis onGBPUSD right here in this post!


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Steve has been involved in the finance and trading arena for well over a decade.
From investing for HNWI’s at PriceWaterhouseCoopers, trading his own account, managing funds, mentoring top city traders at Refco to running the live trading floor at Schneiders. When it comes to trading there is not a lot he has not done.
Steve is the CEO of www.Tradermaker.com, Chief Market Strategist at www.Intertrader.com, Creator of Meta Stock software www.TradermakerPRO.com, Writer of the ‘Ruff guide to trading’
As the chief market strategist of Intertracer.com he has presented over 1000 live webinars and 100’s of live trades including 6 years of consecutive monthly NFP trades.

Steve

Steve has been involved in the finance and trading arena for well over a decade. From investing for HNWI’s at PriceWaterhouseCoopers, trading his own account, managing funds, mentoring top city traders at Refco to running the live trading floor at Schneiders. When it comes to trading there is not a lot he has not done. Steve is the CEO of www.Tradermaker.com, Chief Market Strategist at www.Intertrader.com, Creator of Meta Stock software www.TradermakerPRO.com, Writer of the ‘Ruff guide to trading’ As the chief market strategist of Intertracer.com he has presented over 1000 live webinars and 100’s of live trades including 6 years of consecutive monthly NFP trades.

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