Despite of continuous reports on failure of deal in England but still I expect this upcoming election results will give us finally what market wants as deadline of 31-12-2019 is approaching very fast. Now or never sort of approach should weigh on investors and never seen volatility would be seen. You won’t get any chance of taking a trade in pound dollar, so If you’ve planned to enter earlier to release, then I would suggest you to get out of situation and wait for 24 hours before you enter again.
For me, Price is strongly approaching 1.3760 area which is clear indication of some correction. We earlier have buyer swings which were hold twice above this level and finally we break out lower. Now as price is approaching strongly to the level I would expect market would show some caution ahead of 1.3190-3230 barrier and we can see a small correction to 1.3000 & then before we approach 12th December we can see a small range or spikes followed by correction whenever there are rumours or any news relating to the results.
All the Gbp Pairs would have larger spread ahead of Brexit
Most exotic currencies in Major pairs are gbp/Aud & Gbp/nzd & I have never recommended trading these pairs with small trading accounts or unless we have a small risk trade. These two pairs already have a spread of 4 and 5 points but due to Bretain Voting results we can surely see expansion of spread to atleast 10-12 points or even more. So, trading in these two pairs is definitely not recommended.
Pound Chart & Trading levels ahead of Voting Result
Chart below truly stating that we have couple of Accumulation and distribution areas & finally we are getting out of one and approaching next level which is already a upthrust level on weekely just above 1.3650 & When Price is going through these hurdles, already showing sign of real weakness but as we have strong bullish flag breakout, I expect those orders above that flag are waiting to be clicked & test of that level would add more weight when we visit that 1.3650-90 area again.
Euro gbp facing Price Action zone around 0.8515 before Brexit vote results
I would follow up with the chart. Euro gbp has trying to stop hunt stops ahead of vote results. Stops should be place around 0.8530 entry should be around 0.8515& Target 0.8430-05 area.
I would advice you all to manage your risk and tighten your stops as possible as you can. Risky events can pave away the way for new downtrend but I would recommending closing with first target with two entries and trail the second one at breakeven when First Target is met.
Result of trade Eur/gbp after exit polls
The chart below illustrates that we miss the trade by mere 9 pips and move was so devastating that it breach through the support and hit all targets and through 0.8300.
Thing to look out at this time is approach. Approach to broken support at m30 was the real factor that we need to dig into. I’ll prepare a video soon & will publish my idea why it went down from that SBR (Support becomes Resistance ) & about market manipulation.
By Market manipulation, I mean to say that was the market aware of the exit polls ?
Do the know the results & set orders prior to release and what approach we should follow before these type of big events. All these doubts comes to mind when I was novice & decided to buy the broken support and retest areas to get trapped and leave the trade open before the big events & blow my Accounts
Seriously, that has happened to me hundred of times. Whether it was Greece default, Britain referendum, Scotland referendum etc. I loose my account so many times, but this time I missed the Jackpot trade & believe me I’m not talking about small lots. But anyway, this has been story & I hope those who stay at blog and spend time on the blog understands the value of such events. I’m still quite confident that we will soon get into strong Euro dollar swings which is targeting atleast 1.1800 will leave a trade on table next week.
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