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Profitable Trading Day For Sterling Bears

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!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

Euro And Pound Resume Uptrend

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.

View our daily signal alerts http://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

 

 

 

British Pound Virtually Unchanged Ahead Of U.K. Election

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 http://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

 

 

 

British Pound Reacts With High Volatility To Opinion Polls

Dear Traders,

The pound sterling is reacting with high volatility to fresh opinion polls ahead of the June 8 U.K. general election. After rallying towards 1.29, the pound dropped sharply as a poll showed Theresa May’s Conservative Party may miss a majority. With sterling’s direction being determined by opinion polls, the technical outlook currently seems to recede into the background. For sterling traders, Tuesday has been a profitable trading day with our long entry hitting the profit target exactly before the pound reversed towards lower levels. If the GBP/USD drops below 1.2790 there could be a next barrier at 1.2750 which needs to be significantly broken in order to spark fresh bearish momentum.  On the topside, we still expect a crucial resistance at 1.2980.

For euro traders, the upward trend proved successful with the euro testing the 1.12-mark. From a technical perspective, the euro seems to be formatting a downward channel with the lower barrier currently coming in around 1.11 while the upper barrier, which is currently seen at 1.12, may limit near-term gains in the EUR/USD.

The euro-area’s preliminary headline inflation rate will be released today at 9:00 UTC and the euro might come under some selling pressure ahead of this report as economists forecast a slightly lower reading.

From the U.S., we have Pending Home Sales at 14:00 UTC and the Fed’s Beige Book at 18:00 UTC scheduled for release.

Daily Forex signals:

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

View our daily signal alerts http://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

 

 

 

Pound Slides On Narrowing U.K. Polls

Dear Traders,

The British pound came under increased selling pressure this morning after a poll showed U.K. Prime Minster Theresa May is losing ground ahead of next month’s election. Recently, the gap between Conservatives and Labour has narrowed, putting May’s Conservatives on 43 percent with Labour on 38 percent. The U.K. general election is scheduled to take place on 8 June 2017.

GBP/USD

The pound depreciated against the U.S. dollar and slid towards 1.2865. From a technical perspective, the cable broke below the recent uptrend channel but may find some halt around 1.2850 now. Below 1.2830 however, it could extend its slide towards the crucial support area between 1.2780 – 1.2750. On the topside, we see current resistances at 1.2980 and 1.3080.

The euro traded little changed on Thursday and remained within a small trading range between 1.1250 – 1.1185. We will pay attention to a sustained break below 1.1160, a level that proved to be an important support in short-term time frames. On the upside, any bullish movements might be limited until 1.1240.

Traders will be watching the U.S. GDP data release at 12:30 UTC. The GDP report is considered a high importance event for dollar traders and in case of any disappointment the greenback may struggle to find a bottom.

We wish you good trades for today and a beautiful weekend.

Daily Forex signals:

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

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

Subscribe to our daily signal service http://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