I have been trading this descending channel quite succesfully for a little while now and have previously posted on this. My Bias is back up but in very specific circumstances.
1. Bullish continuation in US stocks. Weaker dollar.
2. I am not entirely convinced the interest rate rise is priced into the GBP.
I have taken a very small position until I see how the US500 plays out. If we see a sell off this will invalidate the trade for me and I suspect we will see the sub 1.33 areas. If there is continuation in the equities, I will look for entries to scale in on the way up. The upcoming interest rates should hopefully potentiate this. Keep an eye on the consolidating picture Trade Safe!
1. Bullish continuation in US stocks. Weaker dollar.
2. I am not entirely convinced the interest rate rise is priced into the GBP.
I have taken a very small position until I see how the US500 plays out. If we see a sell off this will invalidate the trade for me and I suspect we will see the sub 1.33 areas. If there is continuation in the equities, I will look for entries to scale in on the way up. The upcoming interest rates should hopefully potentiate this. Keep an eye on the consolidating picture Trade Safe!
