Top Trade Idea For February 19th, 2015 – GBPUSD
By Mircea Vasiu on Feb 19, 2015 10:24:03 GMT
Yesterday the jobs data in UK showed the unemployment rate moving to the downside at a healthy pace and, more importantly, the real wage growth picked up.
This should translate in a favorable environment for growth as low inflation should help bring the GDP to better levels than expected.
However, the technical picture still favors the US dollar and therefore I am looking at a possible contracting triangle on the daily chart with the current highs almost in the 1.55 to be the end of wave a of the triangle, so basically the triangle still to have some time to develop.
Therefore, I am favoring the downside until the 1.5280 area where a bounce should be expected but, while not buying that potential bounce, will look to sell again into the 1.5380 this time targeting a move below the 1.50 level again and having a 1.5550 stop loss.
FOMC minutes showed a Fed reluctant to raise rates but today’s challenges seem to be more important than the fact that Fed is raising/not raising rates a quarter basis point.
Greece, Ukraine, oil…..all of these are here to stay and we as traders need to adapt to these realities.
It remains to be seen if market will confirm this scenario.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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