GBP Tumbles, We Pocket the Pips - Forex News by FX Leaders

GBP Tumbles, We Pocket the Pips

Posted Tuesday, July 11, 2017 by
Skerdian Meta • 2 min read

A few hours ago we opened a sell forex signal on the GBP/USD, which closed in profit a few minutes ago. This forex pair has been in a downtrend in the last couple of days and this morning it completed a retrace on the hourly forex chart, so that was enough to pull the trigger.

But, the pips came from the BOE (Bank of England) member Broadbent. He popped up a while ago and the GBP dived before he had finished.

He made a few comments but didn´t mention the monetary policy, nor hinted at any action anytime soon. He talked mostly about trade, saying “Trade after Brexit would lift prices” and “Reducing trade with the EU is not beneficial”.

So, nothing about monetary policy and the GBP/USD took an 80 pip dive. He´s not one of the members who voted to hike interest rates in the last meeting, but I´m assuming the market was prepared for some hawkish comments.

GBP/USD couldn´t close above the 100-SMA today

As we mentioned, we weren´t really counting much on Broadbent when we opened our GBP/USD signal. But judging from the price action, the downside seemed easier for GBP traders since they were having trouble closing above the 100-SMA (green) on the hourly chart.

Now, the GBP/USD is considerably lower and we got our pips from that signal, so thank you Broadbent, or perhaps we should thank the forex market for expecting too much in such troubled times for the UK.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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