Where to short the pound for a swing trade
Let us rise above the hurly burly of the minute by minute and enjoy the view of the daily chart and take things a day at a time. A much more sensible pace...
The big picture for the GBP/USD is that the BOE is backing away (almost totally gone) from hiking in May as was previously expected. The Fed is hiking 3 or 4 times this year. The recent departure from a BOE hike and the USD strength has weighed heavily on the GBP/USD pair. This has not been helped by a slew of bad data for the GBP. We are half way through the week and so far for the UK we have one good (construction PMI) and one bad data point (manufacturing PMI). The services PMI is still to come tomorrow.
I am looking for a decent pullback to short the GBP/USD as you will be aware and I now want to try and identify where that might be. The winner for me is the supply region between the 38.2 and 50.0 fib level. That is where I will be watching to try and get another GBP/USD leg down...
