GBPUSD Trading Idea for the week of 9-October-2017

The Cable has been a currency that takes its turns in primary trend changes from the political events most notably from Brexit uncertainty for quite some time now. In the face of recent inability of the government of Teresa May to get any substantial break-through out of negotiations with EU. This, together with an overall hawkishness from Feds in USA has resulted in a massive fall last week.

GBPUSD Weekly

The pair could not break above the strong resistance of 1.3650, and has fallen towards the round figure of 1.30. A break below this psychological level, below the trend line shown in the chart is could be very negative. Alternatively, if the pair can still go above 1.3650, it will be extremely bullish.

Therefore, the preference is to sell if the psychological support of 1.30 or the trendline has been broken, or buying if there is a strong bounce to the upside around that area.

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