GBPUSD and Brexit
I have been following this pair for some time now WITHOUT trading it.
Today won’t be an exception.
I cannot dismiss one price action truth, though.
I am looking at the daily GBPUSD chart and can definitely see a couple of big bearish rejections, i.e. pin bar.
If we ignore all the noise around Brexit, it looks like price is showing us one direction.
GBPUSD has tried a couple of times two support levels and failed miserably.
Looks like there are no buyers, but sellers are even less. The key levels that I see on this chart are:
- Support 1.2500
- Resistance 1.2700
- Resistance 1.3300
- Resistance 1.3600
I am not going to trade this pair until there is more certainty what will happen with Brexit.
The reason why I am sharing this analysis with you is to test if Price Action will work even under such fundamentally volatile conditions as a Brexit.
This is also a reminder that I avoid at all costs trading during major releases and fundamentally impactful events such as this one.
The market will be there tomorrow, but if you lose your capital it won’t do you any good trading during such times.
Always be careful and remember that sometimes it is best to miss a “great” trading opportunity.
Check out my first book on Price Action. Paperback version will be out very shortly. It is currently only a Kindle version.