ridethepig | GBP Market Commentary 2020.01.17

A superb selling opportunity for those in GBP after a round of soft retail numbers this morning. BOE cuts in January now look a done-deal and as widely mentioned in the Telegram 1.309 was the key resistance to track and sell rallies. A brief spike this morning has cleared the board and allowed room for us to scale in further positions.

Consider diagram "UK Election Strategy"

https://www.tradingview.com/chart/GBPUSD/cZEkRhfo-ridethepig-UK-Elections-LIVE-COVERAGE/

At the right moment, the swing was rejected and allowed sellers to blockade 1.35. The barrier, obviously back up from the Exit poll spike is denied and once more brings about an ideal selling position:

https://www.tradingview.com/chart/GBPAUD/qIXrT42E-UK-Election-Strategy/

The most important aid today would be losing 1.296x as it would open the floodgates for sellers to advance ahead of next week's PMI prints. The risks are clearly defined in both directions, this manoeuvre around the Conservative election is called a textbook case of "Buy the rumour, sell the fact" for Sterling. Now sellers must take their job as a dentist and fill the gaps in the ladder all the way down towards 1.28-1.27 initially with extensions located at 1.15 and 1.05 if things get really messy.

Thanks as usual for keeping all your support coming with likes, comments and etc. As usual jump in with any questions, charts and ideas.