Wednesday, February 6, 2019

The pound remains at buying area while markets are affected by automatic trading and unexplained panic

The GBP tried to break the downtrend several times and we noticed that there are clear signs of an end of the sharp bearish wave that the pair has been subjected to and pushed it to test the strong support levels 1.3020 which proved its ability to push the pair back to target areas The main resistance was 1.3200, but the pair declined sharply towards 1.2927 during yesterday's trading, prompting traders to enter into short positions, which led to a panic in the markets as a result of the selling operations which increased by the automated trading which opens deals without human intervention when there is some (These factors have already caused price skips and more flash crash) but they did not see that these sharp fluctuations are normal in the midst of what is happening now and it makes sense to look positively at the end of the pair and consider these declines suitable opportunities for repurchase as long as the pair The highest level is 1.2800
Yesterday we made it clear that we would prefer to re-enter to buy from 1.3030 and still we would expect to re-enter from the current levels 1.2927 again
Of course, it could be cumbersome to the nerves of traders, but what should be recognized is that the worst British exit scenarios seem to be absorbed within the current price margin. Markets have long been dealing with the pound as if a country were in a war and yet there is an agreement that we will not see collapses On sterling prices and each time there were sharp declines followed by a sharp rise up to 1.37 levels
Overall, the British economy is a strong economy that is currently shedding loads and the euro zone will suffer as much as Britain will suffer in the case of rough exit, but the battle of finger biting no more and we do not notice the impact of even the exit operations of companies from Britain during the last period
So we still recommend buying and re-buying the pound sterling especially against the dollar and the Japanese yen from the current levels, while setting our goals away from current levels, we are talking mainly about investment deals that we may leave on the trading platforms for more than a month

Trading Recommendation
Re-buy the pair (following previous recommendations) from existing areas
Take the first profit 1.3150
Take Second Profit

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