The pound gapped down Monday morning 1/16/17 as markets expected Theresa May’s speech on 1/17/17.
Note XAUGBP also broke resistance.
I got in the 1/16/17 15:00 reversal at 1.20100+ but toook it way too early 1.20700+ and I was already happy as it played around 1.20400 to 1.20500. I was expecting another dip down below 1.20 but it never materialized.
13:00 Pound broke yesterday’s high and didn’t look back.
20:00 Biggest leg of the move. Broke through a previous high and hurt those who shorted up until 1.24.
22:00 I resisted the urge to short early and put in my short orders around 1.238 and 1.239 expecting the Daily to hit MA. It did.
11:00 Adjusting exits to 1.2335 and 1.2316 expecting it to hit H1 24MA before rallying again.
- Watch the DXY.
- Look for the main drivers. It could be the dollar, commodities, gold, or some other favorite of the day.
- Events could make your month. Had I held on to my 1.20100 long, I would’ve made my month and then some.