Forex trading the Strait of Hormuz, Brent Crude Oil, rollercoaster ride [Video]

Brad Alexander FX Large Limited

Welcome to today’s Market Blast.

Today, we will take a look at Forex Trading on EURGBP, GBPUSD, WTI and Brent Crude Oil.

It is extremely rare to see such volatility in any market, but we have it today in crude oil.

We all know why, as the intense oscillations in messages from the governments of the US and Iran are usually contrary, and any escalation or perceived escalation in the Iran war will drive price action higher.

On the other side, any rumours or statements, true or not, regarding ceasefires, will see prices falling.

These volatile situations are where traders can take advantage, but you have to take risk management very seriously and be prepared to close your positions when contrary information comes out.

Also, the spread between WTI and Brent Crude Oil has narrowed to $9 from $12.

The White House is again today threatening to bomb Iran, as they clearly have no control over the Strait of Hormuz, and no obvious way forward.

Keep your ears and eyes open for news and opportunities.

We see an ascending triangle in GBPUSD with resistance at $1.36.

This is most likely the result of bad election results for the governing Labour Party last night.

We see bearish confluence in the Stochastic Oscillator, so we may get a pullback to support at any of these key levels.

The daily chart shows us some key levels of resistance above, but price action in what could be a rising wedge.

We see the exact opposite, on the EURGBP daily chart, for obvious reasons, with a descending triangle.

If we look at the 4-hour chart, we see a Sell opportunity in an obvious downtrend.

The one-hour chart tells a bullish story so, no matter where you go, wait for confirmation.

And I encourage you to check all GBP pairs.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

GBP/USD falters ahead 1.3400

GBP/USD has advanced just past the 1.3400 barrier before losing some momentum on Tuesday. Cable has since edged lower to trade around 1.3380 as investors turned more cautious following reports that Iran had targeted commercial vessels attempting to transit the Strait of Hormuz.

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