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GBPUSD price action makes you want to lengthen until trader sentiment wears off


GBPUSD bullish and bearish trading continues

Price action over the past two days in the GBPUSD

GBP/USD

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking, GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking, GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.
Read this term makes you want to lie down until the feeling goes away to commerce. The price moved up and down between 1.3107 on the upside and 1.3044 on the downside. Today’s low hit 1.30495 during the first hour of Asian trading and a high of 1.31058 at the start of European trading.

GBPUSD’s upside move today briefly breached its 100-hour moving average (blue line currently at 1.30974), but momentum could not be sustained as sellers instead leaned against the higher yesterday’s top (see the green numbered circles).

On the downside, the lows from March 29 at 1.3059 and 1.3049 will now be seen (price is currently trading at 1.3072) followed by a low dating back to March 16 at 1.30419 (see circles numbered red ones).

Yesterday’s low stalled just before this level, as did the FOMC post volatility

Volatility

In trading terms, volatility refers to the amount of change in the rate of an index or asset, such as forex, commodities, stocks, over a given time period. Trading volatility can be a way of describing the fluctuation of an instrument. For example, a highly volatile stock equates to high price swings, while a low volatility stock equates to low price swings. Overall, volatility is an important statistical indicator used by many parties, including financial traders, analysts, and brokers. Volatility can be an important determinant in the development of trading systems, protocols or regulations. In retail, traders can be successful in both low and high volatility environments, but the strategies employed are often different depending on the volatility. Is volatility good or bad? In the forex space, lower levels of volatility on currency pairs provide fewer surprises, moves, and are suitable for certain types of individuals such as position traders. By extension, highly volatile pairs are attractive to many day traders. This is due to fast and strong moves, which collectively offer higher profit potential. However, the risks associated with these volatile pairs are manifold. It should be noted that the volatility of instruments or indices can and does change over time. There can be periods when even very volatile instruments show signs of stagnation, with the price not really moving in either direction. For example, certain months in the summer are associated with low trading volatility. Too little volatility is just as problematic for the markets as too much. Too much volatility can cause panic and create its own problems, such as liquidity constraints.

In trading terms, volatility refers to the amount of change in the rate of an index or asset, such as forex, commodities, stocks, over a given time period. Trading volatility can be a way of describing the fluctuation of an instrument. For example, a highly volatile stock equates to high price swings, while a low volatility stock equates to low price swings. Overall, volatility is an important statistical indicator used by many parties, including financial traders, analysts, and brokers. Volatility can be an important determinant in the development of trading systems, protocols or regulations. In retail, traders can be successful in both low and high volatility environments, but the strategies employed are often different depending on the volatility. Is volatility good or bad? In the forex space, lower levels of volatility on currency pairs provide fewer surprises, moves, and are suitable for certain types of individuals such as position traders. By extension, highly volatile pairs are attractive to many day traders. This is due to fast and strong moves, which collectively offer higher profit potential. However, the risks associated with these volatile pairs are manifold. It should be noted that the volatility of instruments or indices can and does change over time. There can be periods when even very volatile instruments show signs of stagnation, with the price not really moving in either direction. For example, certain months in the summer are associated with low trading volatility. Too little volatility is just as problematic for the markets as too much. Too much volatility can cause panic and create its own problems, such as liquidity constraints.
Read this term low (at 1.30472).

The extremes are doing a good job of confining the pair within the GBPUSD with 1.3107 above and 1.3042 on the downside as end-book resistance and support levels.

Between the bookends, what are you doing?

The jerky price action makes you want to lie down until the trading sentiment wears off.


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