- After last night’s election, not only we had saw the strength of USD after this kind of event, we also saw the strength of financial market for USA. What really impressed me is the recovery from the negative sentiment, it was the exactly same situation in UK with Brexit back then, but GBP never recovered and continued to be bearish fundamentally. USD is still strong fundamentally, the only thing change is the FED rate hike numbers, but the job market, GDP data and inflations are all the same. So fundamentally and sentimentally speaking, USD already won over GBP. GBP has the last good sentiment from high court ruling, but then since Germany and EUROZONE are still firm on the non one single market deal, on top of that, the USA new president elect is going to cause more uncertainty for the world. We think if all things are equal, GBP/USD is still a good pair to short and hold for long-term. Technically we are near 1.25 handle and have a bearish kangaroo tail today.
- The catalyst was the U.S election
- We’re at middle
- The risk is the negative sentiment that might come out from USA after the election, but i think Donald and all the politicians will try their beset to calm the public for next few days or weeks. Another risk is another positive news from UK, but so far the best positive news haven’t not been able to bring GBP up.
- I’ll mange it with global economy and sentiment
SL @ 1.2624
we’ve cancelled this trade because we did not get filled and now the sentiment has changed for GBP.