Short GBP/USD (From 3-Sep to 11-Sep)
We were stopped out of our short GBP/USD position yesterday on the rise through our stop loss at 1.3058; executed at 1.3059 on 11-Sep
Real-Time AmpGFX – sold GBP/USD ( Sun 9/2/2018 5:29 PM MT)
Sold half unit GBP/USD at 1.2918
Comment
News reports suggest that risk is building for a challenge for leadership of UK PM May by Brexiter Boris Johnson. We would see this as escalating the political risk.
In the last week, GBP recovered on hopes of a deal. But the prospect of an agreement getting through UK parliament remains low, especially if Johnson is rallying the troops for a challenge.
UK equities were quite weak; bank shares appeared to be undermined by EM market turmoil, but also may reflect negativity around Brexit uncertainty.
In most respects, GBP rally appeared more about short covering. The trend in GBP is down since April, and the rally last week takes it close to the top of a down-trend, offering a reasonable location to short.
We have significant risk in play at the moment with short AUD and NZD positions, and overall uncertainty with the GBP is relatively high, so we have sold a half unit.
Positions
Short half unit GBP/USD at 1.2918; s/l 1.3058; t/p 1.2388 (Capital at Risk 0.58%)
Short one unit NZD/USD at 0.6679; s/l 0.6678; t/p 0.6388 (s/l lowered from 0.6773)
Short one unit of AUD/USD at 0.7310; s/l 0.7323; t/p 0.6888 (s/l lowered from 0.7413)