Pound is pulling back across the board today after last week’s breakout, on headlines that PM Theresa May ” insisted on Sunday that she had a mandate to pursue Britain’s exit without consulting Parliament.”
This reignited fears of a hard Brexit. But in our opinion, the technical picture has shifted to the bullish side, and this pullback presents a good opportunity to go long in various pairs. First opportunity we like is GBP/AUD, which is coming back to backtest inverse H&S neckline breakout area and 50MA on the 4-hour chart.
Buy Points: 1.6115 & 1.6080
On a separate note, we took profit in CAD/JPY, as it hit our target very quickly thanks to the gap up post FBI clearance of Clinton email probe.
Original Trading Game Plan Post: https://wingcapital.wordpress.com/2016/11/06/fx-trading-game-plan-cadjpy-eurgbp/