GBPUSD Reversal Could Accelerate or Break on Event Risk
The US Dollar has broken its longest string of losses in 18 months, which has in turn supported a clean technical reversal for GBPUSD. However, the rebound for the greenback doesn't carry much fundamental momentum via Taper speculation or risk-based trends. Without an underlying current to leverage momentum, those trading both the dollar and yen-backed crosses must maintain reasonable objectives and a sensitivity to false breakouts. It is in these conditions, in fact, that event risk-drive volatility is of greater concern. That puts the cable and the other pound pairings in stark relief for short-term, event risk traders. We discuss current trading conditions, top event risk and the key trade setups in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.