Pound Versus Dollar and Franc August 17th

FX Strategy Video > Currency Pairs Analysis

The GBP/USD pushed higher on Tuesday as the cable continues to get a bid. It is approaching the 1.65 area, and could face a large amount of resistance in the region. The  pair does look bullish, and the most recent low didn't make a new low either - but anticipating this move could get you hurt. We are waiting to see if the daily candle closes above 1.65, and if it does - we are very bullish until roughly 1.68 or so.

The GBP/CHF pair broke through the 1.30 area on Tuesday, and even broke the top of a shooting star in the process from Monday. However, with the Swiss National Bank making announcements as to their intentions to devalue the Franc on Wednesday, only fools rush into this pair right now. True, it looks very strong technically - but there is simply too much headline risk at the moment. The wise trader waits to see the reaction to this announcement, and then places the trade.

Published on 16th of August 2011
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