The price action in the forex market is all over the place today; safe haven assets are split with Yen and Gold going up while the Swissy has been sliding lower. The Pound is on retreat again as Brexit uncertainty increases. Cryptocurrencies on the other hand, are shaping up for a buy trade.   

Guess who Captain Hook is, Alice Cooper or Theresa May, left or right?

Messy Brexit Is not Helping the Pound

Brexit is getting closer, but the UK leaders still think they can “have the cake and eat it too”. British Prime Minister Theresa May went in all glorious a year and a half ago aiming to get the best deal for the UK, giving nothing back.

But as expected, the EU is standing firm and the heat has been building up for the UK. The deadline for Brexit is approaching fast but there’s no deal to be seen on the horizon.

That has increased the pressure on PM May from her own Party who are asking her to step down. Although, Downing Street issued a statement that ignored these claims, but this shows you that everything is getting messy for the UK and of course there is a lot of heat in the UK politics.

This is obviously a very negative scenario for the GBP, which was feared when Brexit won last year. GBP is sliding lower in a bearish trend, so I will be looking for selling levels in GBP/USD during this week.     

EUR/USD Remains in a Downtrend

EUR/USD tried the upside three times until a few weeks ago, but it failed to break above 1.21. That finally discouraged the buyers who have pushed up relentlessly since the start of the year.  

In the last few weeks, this forex pair has turned lower and Catalonia’s independence referendum made things a little worse. We don’t know how this independence thing will evolve but Spain remains strongly against it, as Spain’s De Guindos said this morning that Catalonia’s independence won’t happen.

This should surely weigh on Euro pairs and we can see that buyers can’t find enough strength to push higher. They tried but the 50 SMA (yellow) on the H4 chart proved to be too strong of a resistance to take out. So, I have a bearish bias towards this pair as well, albeit not as strong as GBP/USD.    

The Long Trade in Cryptocurrencies Is Still Valid  

This was the topic of this section yesterday actually, but the chart setup in cryptocurrencies is still pretty similar. In fact, it looks a bit better for buyers today.  

As I mentioned on the previous forex update, the 50 SMA (yellow) on the daily Bitcoin chart which we highlighted earlier held the decline for the second time today.

When I posted the update a couple of hours ago, the daily candlestick looked like a pin. Now, Bitcoin has climbed higher and the daily candlestick looks pretty bullish.

The price a bit too high now for my money management techniques, so I’m not jumping in on the northbound train. I’m just waiting for another retrace lower on smaller timeframe charts (H1 and H4) before going long.   

Have we missed our chance to go long on Bitcoin?

Bullish Ripple

1. The bigger trend is up
2. The uptrend gained pace yesterday
3. The 20 SMA (grey) is providing support on the H1 chart

Ripple Coin has really taken off

After trading in a range for a few days, Ripple Coin (XRP) made a breakout on the top side yesterday and it stretched further up during the night. I checked for any Ripple related news but couldn’t find any, so let us know if you hear anything guys.

There was a retrace lower this morning, but the 20 SMA on the hourly chart held the decline and right now we’re climbing up. So, I’m long biased regarding XRP but I’m waiting for another retrace lower to get in long.

In Conclusion

The Euro and the GBP are heading down among political turbulences. Ripple on the other hand is ripping higher, so we will look to sell EUR/USD and GBP/USD this afternoon while looking to buy Ripple Coin.