Daily Trade Recommendation

Trade Recommendations for current Session

Today I’m looking for buying opportunities on GBP/USD following the outcome of the Scottish referendum being a “No” vote.

Look to buy this pair around the 1.6420 area with a profit target around 1.6520 and a SL around 1.6350

Overall Bias on this trade

Today is all about the GBP, recall before the polls started regarding the vote for independence we stated that fundamentally across all pairs the GBP was the strongest currency, given how the UK economy was expanding exponentially faster than its major counterparts. It was simply due to a surge of USD strength and the overwhelming negative sentiment and uncertainty regarding the GBP that has pushed it down, all the while data coming from the UK was positive.

Now that the uncertainty regarding the GBP and the vote is over we can expect the GBP to head in a continued upward direction. The reason why I am pitting it against the USD as opposed to a weaker currency is due to the GBP; which suffered notable losses across all pairs in the weeks preceding the referendum, recorded its most significant losses against the USD.

Before the looming referendum we were noting 1.66 as a solid level of support, I’d expect over the coming weeks for GBPUSD to gradually regain those levels especially as the markets begins to inquire again, “when is the Bank of England going to raise rates?”