I did not mark today’s Great Britain release on its’
Gross Domestic Product by mistake. You see I follow dailyfx calendar and they
have statistics on which release has the highest impact on markets. I usually
skip those that are of medium importance. However, it turned out that they
marked today’s release as of medium importance and this fooled me. I actually
had a long in gbp/chf from yesterday, which was not out right when the news hit
the wire. It’s no wonder that Pound fell across the board.
Open 15 minute charts in various British Pound pairs
to see what happened. I follow 7 Pound denominated pairs and I can clearly see
that ‘the cable’ (British Pound) was beaten in all of them. The biggest drop
was probably in gbp/jpy. It collapsed around 70 pips. The second best pair to
trade the news would have been eur/gbp, which has much higher pip value than
most other pairs. It is not very volatile, but today its’ behavior was extraordinary.
It rose around 40 pips, which would probably be equal to gbp/jpy fall or even
worse. I am still positive on some Pound pairs, but they have to clear their
technical resistance levels before real bullish price action is confirmed.
I will expand more on this in tomorrow’s update.
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