Advertisement
Advertisement

Trading the Pound Not for the Timid

By:
Yaron Mazor
Published: Feb 14, 2018, 13:39 UTC

The Pound continues to be choppy. After attaining short-term highs early this morning, the Pound has reversed.

GBP

U.S inflation data today, via the Consumer Price Index will be a springboard for volatility in forex and equities if there are major surprises.

All aboard the Pound Roller Coaster

All aboard the Pound roller coaster ladies and gentlemen. The British currency, along with the other major currencies, has proven forex is not for the timid the past ten days.

GBP/USD 4H Chart
GBP/USD 4H Chart

The Pound is near 1.3870 as of this report and will remain choppy as traders anticipate and then act on the U.S Consumer Price Index data due in a short time. The inflation data could be a springboard for tumultuous broad markets if the result is not in line with expectations. 

U.S Inflation Data as a Springboard for Pound

The Pound hardly reacted to inflation data from the U.K yesterday, which was fractionally higher than expected. But the Pound did gain on Tuesday in the wake of weaker U.S Dollar sentiment. Resistance looks to be 1.40, and support looks like it could be 1.37 for the Pound near term.

GBP/USD Daily Chart
GBP/USD Daily Chart

However market conditions remain choppy in forex and equities this morning, and traders should be prepared for additional rough sailing over the next twenty-four hours and have their risk management in place.

In the short term, we believe the Pound may be negative. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

About the Author

Yaron Mazorcontributor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.

Did you find this article useful?

Advertisement