Selling Opportunities GBP/USD – Forex Trading Tips

Posted On 10 Apr 2015

By : Jarratt Davis

Comment: 0

Tag: AUDNZD, GBPUSD

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Originally updated: 08:00

Trading Bias: Short

Currency pair: GBP/USD

Current Sentiment: Bearish

In today’s trading session we will be focusing on short term selling opportunities on the GBP/USD.

Fundamentals:

Today I’m looking for selling opportunities on GBP/USD as the GBP has continued to drop significantly. The market becomes increasingly unsettled regarding the GBP in anticipation of the upcoming general elections.

Fundamentally I remain bullish on the GBP in the long term. HOWEVER, given the uncertainty regarding the currency as we draw closer to the referendum we are seeing the market migrate away from the GBP. On account of this the GBP fell against the USD to a low 1.4680 yesterday. This is due to the uncertainty of the upcoming elections.

The USD is also sitting around 3 week highs as it’s set to post it’s first weekly gain in a month. This is due to focus turning to prospects for the first rate hike since 2006. Therefore, we’re expecting the USD to continue strengthening throughout today’s session.

Technicals:

We expect this pair to fall lower during today’s session.

There is strong resistance at 1.4750 which could provide trading opportunities should the price pull back. Look for the price to bounce off this level if it retraces back to it.

Remember to be aware of intra-day news as this can very often change the sentiment which makes our trade weaker. Look for any news that could be positive for this pair, which would could change the sentiment to bullish.

Other Market Moving News:

The latest poll for the UK elections has Conservatives at 34% and Labour at 33% and with less than a month until the elections, focus is starting to turn towards this uncertain event.

Both the AUD and NZD traded steady overnight. This is mainly due to carry trade demand as traders continue to prefer higher yielding currencies.

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Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"]www.facebook.com/JarrattDavisForex/[/social] [social type="twitter"]https://twitter.com/jarrattdavis[/social] [social type="google-plus"]https://plus.google.com/+JarrattdavisForexTrader/[/social] [social type="youtube"]https://www.youtube.com/user/JarrattDavisForex[/social]