GBPUSD tumbles and gives up gains

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GBPUSD

GBPUSD eliminates gains on the day

La GBPUSD

GBP / USD

The GBP / USD is the currency pair of the United Kingdom currency, the British pound (symbol £, GBP code), and the United States dollar (symbol $, code USD). The pair’s rate indicates how many US dollars it takes to buy one British pound. For example, when the GBP / USD trades at 1.5000, it means that 1 pound is equivalent to $ 1.5. The GBP / USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and low spread. While the spreads of currency pairs vary from broker to broker, in general, the GBP / USD often remains within the 1 pip to 3 pip spread range, making it a decent candidate for a scalp. The GBP / USD pair, also informally known as “cable” (due to transatlantic cables used to telegraph its exchange rate back in the 19th century) has a positive correlation with the EUR / USD, and a negative correlation with the USD. / CHF. Trading the GBP / USD While many traders and even brokers claim that the best time to trade the GBP / USD is during its busiest hours in London and New York, doing so can be a double whammy due to the often unpredictable nature of the pair. Its volatility also fluctuates frequently, so what might be a lucrative looking strategy one month may not be as productive in later months. In addition, purely technical traders may really struggle to be consistent with this pair, (i.e. ignoring basics), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not on the cards for the foreseeable future, it is clear that GBP / USD will be affected by some developments and negotiations with the European Union.

The GBP / USD is the currency pair of the United Kingdom currency, the British pound (symbol £, GBP code), and the United States dollar (symbol $, code USD). The pair’s rate indicates how many US dollars it takes to buy one British pound. For example, when the GBP / USD trades at 1.5000, it means that 1 pound is equivalent to $ 1.5. The GBP / USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and low spread. While the spreads of currency pairs vary from broker to broker, in general, the GBP / USD often remains within the 1 pip to 3 pip spread range, making it a decent candidate for a scalp. The GBP / USD pair, also informally known as “cable” (due to transatlantic cables used to telegraph its exchange rate back in the 19th century) has a positive correlation with the EUR / USD, and a negative correlation with the USD. / CHF. Trading the GBP / USD While many traders and even brokers claim that the best time to trade the GBP / USD is during its busiest hours in London and New York, doing so can be a double whammy due to the often unpredictable nature of the pair. Its volatility also fluctuates frequently, so what might be a lucrative looking strategy one month may not be as productive in later months. In addition, purely technical traders may really struggle to be consistent with this pair, (i.e. ignoring basics), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not on the cards for the foreseeable future, it is clear that GBP / USD will be affected by some developments and negotiations with the European Union.
Read this Term traded higher in the early NA session and in doing so moved away from its 200 hour MA at 1.31342. The high price reached 1.3166. That got with 6 or so pipes from the March 31 swing high at 1.31689.

The Brainard more hawkish comments stopped that rise and sent the GBPUSD price lower (higher USD). The pair wiped out gains for the day (closing yesterday was at 1.31123). The low on the upside reached 1.31111.

The price has seen a rebound and is now trading between the 200-hour MA at 1.31134 and the 100-hour MA at 1.31256. The current price is at 1.3130. A move back over the MAs would muddy the waters again. Moving below the lower 100-hour MA now (and staying below) would give the sellers more control.

Needless to say, the volatile

Volatility

In the case of trading, volatility refers to the amount of change in the index of an index or asset, such as forex, commodities, stocks, over a defined period of time. Trading volatility can be a means of describing the fluctuation of an instrument. For example, a highly volatile stock equals large fluctuations in price, while a low volatile stock equals hot fluctuations in price. In general, volatility is an important statistical indicator used by many parties, including financial traders, analysts, and brokers. Volatility can be a major determinant in the development of trading systems, protocols or regulations. In the retail space, traders can succeed in both low and high volatile environments, however the strategies used are often different depending on volatile. Is Volatility Good or Bad? In the forex space, lower levels of volatility across currency pairs offer fewer surprises, moves, and are suitable for certain types of individuals such as position traders. By extension, high volatile pairs are attractive to many day traders. This is due to fast and strong movements that collectively offer the potential for higher profits. However, the risk associated with such volatile pairs is numerous. Notably, volatility with instruments or indexes can and does change over time. There may be times when even highly volatile instruments show signs of flatness, with price not really progressing in either direction. For example, some months in the summer are associated with low trade volatility. Too little volatility is as problematic for markets as too much. Too much volatility can trigger panic and create its own things, like liquid limits. A famous example of this is the Black Swan events, which have historically plagued foreign exchange and stock markets.

In the case of trading, volatility refers to the amount of change in the index of an index or asset, such as forex, commodities, stocks, over a defined period of time. Trading volatility can be a means of describing the fluctuation of an instrument. For example, a highly volatile stock equals large fluctuations in price, while a low volatile stock equals hot fluctuations in price. In general, volatility is an important statistical indicator used by many parties, including financial traders, analysts, and brokers. Volatility can be a major determinant in the development of trading systems, protocols or regulations. In the retail space, traders can succeed in both low and high volatile environments, however the strategies used are often different depending on volatile. Is Volatility Good or Bad? In the forex space, lower levels of volatility across currency pairs offer fewer surprises, moves, and are suitable for certain types of individuals such as position traders. By extension, high volatile pairs are attractive to many day traders. This is due to fast and strong movements that collectively offer the potential for higher profits. However, the risk associated with such volatile pairs is numerous. Notably, volatility with instruments or indexes can and does change over time. There may be times when even highly volatile instruments show signs of flatness, with price not really progressing in either direction. For example, some months in the summer are associated with low trade volatility. Too little volatility is as problematic for markets as too much. Too much volatility can trigger panic and create its own things, like liquid limits. A famous example of this is the Black Swan events, which have historically plagued foreign exchange and stock markets.
Read this Term is raised as the markets react.

A quick look at other markets:

US stocks are mostly lower

  • Dow industry average trade marginally lower by five point -0.01%
  • The S&P index is -16.5 points or -0.36% at 4566.50
  • NASDAQ index is down -187 points or -1.3% at 14344
  • Russell 2000 is down -24 points and points or -1.19% at 2070.55

In the U.S. debt market, yields are rising:

  • two years 2,516% +9 points to two basis points
  • 10 year 2.545%, +14.8 basis points
  • 30 year, 2.578%, +12.0 basis points

The 10-day yield seeks to test last week’s high at 2,557%

10 years

U.S. 10-year yields are trading near last week’s highs

Source

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