Profitable Trading Day For Sterling Bears

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Dear Traders,

What a trading day – at least for sterling traders that sold pounds on the initial exit polls. Before we start to explain the reason for sterling’s knee-jerk decline let us allow to be enthusiastic about our short trade which has hit the profit target of 140 pips within less than one minute after initial results showed the U.K. faces a hung parliament. We hope that many of you were also able to capture the profitable downward move in the GBP/USD, even though some orders may have got triggered a few pips lower due to high slippage.

In sum, the U.K. vote is a disaster for Theresa May as the ruling Conservative Party is falling short of an overall majority. A hung parliament is considered a nightmare scenario for sterling investors as the U.K.’s course and Brexit path are much more uncertain now. We remember that Prime Minister Theresa May has called this snap election to win a comfortable majority but the opposite happened: the Conservatives are losing seats instead of winning seats. Consequently, May lost her bet. She will now need to resign or try to form a new government.

The pound dropped as much as 2.5 percent on the new round of political uncertainty. The 1.27-level served as a short-term support but if the pound drops below 1.2690 we could see further losses towards 1.26 and 1.24. If the pound climbs back above 1.28, we expect a resistance to come in at 1.2850 and 1.29.

The ECB decision and testimony from former FBI director Comey did little to impact the price action in the euro and U.S. dollar. The EUR/USD traded slightly lower on Comey’s testimony but remained within a narrow trading range between 1.1265 and 1.1180. As long as the euro remains confined to a sideways range of 1.1285 – 1.1150, there is nothing new to report.

With no major risk events being on tap today, the price action could be muted.

Have a good weekend and remember to secure your weekly profits.

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We wish you good trades and many pips!

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Euro And Pound Resume Uptrend

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Dear Traders,

The British pound traded higher against the greenback in the run-up to Thursday’s U.K. election. A recent poll has suggested that Theresa May’s Conservatives may still maintain a lead over the Labour Party. The GBP/USD broke significantly above 1.29 and headed towards 1.2950. We expect a next resistance to come in between 1.2985 – 1.2950. For the pound to rally, it would require a renewed break above 1.30. A current support is however seen at 1.2885.

The EUR/USD found support at 1.1235, so yesterday’s downswing might be considered a normal correction within the recent uptrend of the currency pair. If the euro falls below 1.12 we could see a steeper decline towards 1.1160/40. On the topside, we anticipate next hurdles at 1.1320 and 1.1360.

There are no major economic data reports scheduled for release today, so the market activity could be subdued.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

British Pound Virtually Unchanged Ahead Of U.K. Election

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Dear Traders,

The British pound gapped slightly lower after the latest terror incident in London, in which seven people were killed and 48 were injured. The attack comes just days before the June 8 general U.K. election which is considered a big event for sterling traders. The latest polls indicate the Conservatives’ lead over Labour has shrunk to between 1 and 12 percentage points, indicating a tightening race. If Prime Minister Theresa May is not getting the increased majority she is hoping for, sterling could suffer further losses.

Friday’s NFP report proved disappointing even if the May jobs data were not bad enough to curtail the expectations for a Fed rate hike this month. While the U.S. dollar remained under selling pressure, the euro benefited the most from the greenback’s weakness and rose to a high of 1.1285. It will now be interesting whether the euro is able to tackle the hurdle at 1.13. Above that level, we see a next resistance at 1.1350, whereas the 1.12-level could lend a short-term support for the euro.

GBP/USD

In short-term time frames we see that prices narrowed, formatting a symmetrical triangle which could predict upcoming price breakouts. A break above 1.2910 could result in an upswing towards 1.2950 while a decline below 1.2850 could drive the pound lower towards 1.28.

This week’s economic calendar is fairly light in terms of market moving data. The only highlight will be the U.K. election and the European Central Bank meeting on Thursday which can be market moving events.

The service-sector ISM survey is scheduled for release today at 14:00 UTC but with the NFP report behind us, this report might not attract much attention.

In short, it could be a quiet start to the new week but let us be surprised.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

All Eyes On NFP Data

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Dear Traders,

It is U.S. jobs day and the May Nonfarm Payrolls report is considered the top event risk this week as it could generate big swings for the U.S. dollar. The greenback’s performance was only modestly affected by yesterday’s solid ADP report and a strong ISM manufacturing report, so traders hope for more profitable swings today. The expectation is for 180K jobs to have been added in May and while a rate hike at the Fed’s next meeting on June 13 and 14 is widely expected, investors will read between the lines to assess the economic environment in the U.S. The dollar has been weak throughout the month of May and dollar bulls need a good reason in order to reinvest into the dollar trade.

The first trading day of June has been a challenging one for sterling traders as the cable traded choppily sideways, triggering and eliminating pending orders easily. We hope for more profitable trading opportunities today.

The euro refrained from falling below the 1.12-mark and hold steadily above that threshold. In case of a dip below 1.1190 we will once again shift our focus to the 1.1160-support. Lower barriers are seen at 1.11/1.1080 and 1.10 whereas any upward movements above 1.1265 could be limited to a high of 1.1350.

The Payrolls report is scheduled for release at 12:30 UTC today.

We wish you good trades and a beautiful weekend.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co