Good morning team,
We have taken the initial move lower on the GBPUSD, however, I am turning my attention to commodity-related currencies or “risk” currencies. The AUD is ticking the box for a short trade setup, fundamentally the AUD should move lower alongside equities and other risk assets (crypto). The DXY also appears to be running higher due to the technical bounce and breakout from a falling wedge formation. Overnight, FED officials from both the hawkish and dovish wings of the US central bank confirmed their determination to raise interest rates, even as GDP growth slowed by -1.5% last quarter. This has given the DXY fuel to run to the upside.
Trade Setup: SELL market execution, current price 0.7166, stop loss 0.7236 and take profit target 0.6990.
Stop loss: 70 pips
Take profit: 176 pips