- Positions starting to run
- Looking to sell the Pound
- Plenty of risk associated with Brexit
POSITIONS - All of my positions are running well right now and look to be on the verge of getting going. AUDNZD has so much upside potential as it continues to show signs of a major base, the SPX500 is desperately wanting to roll over in favor of a major correction, while this newest NZDUSD short position has plenty of room for a drop back below 0.7000 in the sessions ahead. Right now, it's kind of just about sitting back and letting the trades do their thing.
THE POUND - As far as today and new trading possibilities go, there is a chance we get a setup in GBPUSD. My thoughts are that there could be a nice rally post BOE. Why? Well, for one of two reasons. Either the BOE cuts as expected and the market rallies on the fact, given that this cut had already been priced in ahead of the event, OR the Pound rallies on news the BOE decides to do nothing, which is less likely. However, with the BOJ recently underdelivering and the conversation over the limitations of monetary policy gaining traction, this possibility should be considered.
RATIONALE - But whatever the case, there is still way too much uncertainty surrounding Brexit that any large rallies should be used as a formidable opportunity to sell into. The market is in a bit of a holding pattern with Brexit as the government drags out the process. And yet, the Brexit wheels are in motion and this poses more downside risk to the Pound. Moreover, with US equities starting to show signs of faltering and the Fed still not ready to rule out rate hikes this year, the Pound is also vulnerable on these fronts as well. So if we see a sharp rally today, I will be looking to sell GBPUSD.