GBP crosses

GBP: Feels as if the market is still quite short

Option barriers at 1.5500 are well and truly broken and the GBP has a definite bullish feel to it. I’d prefer to trade this view on the crosses, perhaps long GBP/CHF or long GBP/AUD, rather than straight cable which will run into strong technical resistance at 1.5580. The market has been almost unanimously bearish GBP over the last 6 months and it could definitely rise by another 5-7% before all the shorts get squeezed out.

  1. Good evening Sean,

    Have you studied USD/CHF ? Is it good idea to add near 9350 ? Otherwise for today, it looks sensible to play the AUD/USD short at 1.0360, SL above 1.0400.

  2. Yes Papillon, I’ve been studying the Swissy very hard, maybe too hard as I’m finding it hard to come up with a solid strategy. I think its a matter of trading every session as it comes and looking for trading opps. For today, I think we buy near 9390 s/t support and see what happens. Then lighten up near 9500?

  3. I’d stick with one pair and not try others like AUD. For instyance, if cable is near 15580 and audusd near 10360, and Swissy near 9390, then buy usdchf

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