Tusk Gets Real About Brexit Conditions

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One major forex pair we didn’t concentrate during the trading attention this week was GBP/USD.

Papers about EU chief Donald Tusk making the concrete Brexit conditions and setting timing to protect union members have been doing the rounds.

“Our task will be to protect the interests of the EU as a whole and each of the 27 member states.”

Basically, Tusk is insisting that the UK cannot hedge their bets to receive all the benefits of the EU that they don’t want to give up to avoid the negative.

“There will be no compromises.”

GBP/USD hourly

GBP/USD hourly

The Cable hourly chart following the flash crash is interesting. Even with the fallout being that basically it was just a big void of liquidity exaggerated by algos, price hasn’t come close to retracing the move and as you can see here, has just ranged sideways lower.

Headlines can do the rounds about hard Brexits and the possibility that they will in fact stay in the EU (oh come on…) all they want, but the post-Brexit GBP/USD chart is all about technical levels.

Just remember that.

GBP/USD daily

GBP/USD daily

Put it in a technical analysis textbook already!

Moving through my charts looking for what grabs my attention this morning and it was in my little indices trading group

S&P 500 weekly

S&P 500 weekly

Price has pulled back to the weekly zone that we were excited to break out to record highs.

S&P 500 daily

S&P 500 daily

As its a weekly level, it’s never going to hold to the pip, but a daily pin bar forming on the line will be significant enough to at least show some buyers lurking in the midst.

Just remember that the calendar is pretty full to finish the week off, highlighted by Janet Yellen featuring as the keynote speaker at the 60th annual economics conference hosted by the US Federal Reserve Bank of Boston.

Don’t undo a good trading week chasing low-quality trades on a Friday. Be an intelligent trader.

Enjoy the weekend!

This Friday

AUD RBA Financial Stability Review

CNY CPI y/y

CNY PPI y/y

GBP BOE Gov Carney Speaks

USD Core Retail Sales m/m

USD PPI m/m

USD Retail Sales m/m

USD Prelim UoM Consumer Sentiment

USD Fed Chair Yellen Speaks

This is a guest post originally appeared on Vantage FX. Reposted with permission.

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