GBPUSD is getting hammered today on a stronger US dollar, something I warned against earlier in the week.
In today’s video, I share exactly how I’m trading GBPUSD next week, including how low I think the pair could go this year.
I also discuss the latest on the US Dollar Index (DXY), and why this week’s rally is built stronger than anything we’ve seen this year.
[embedyt] https://www.youtube.com/watch?v=qKtrzD7tCcM[/embedyt]The US dollar is rocketing higher today following a hot Consumer Price Index (CPI) print earlier in the week.
However, the greenback is mostly following bond yields higher, something I discussed at length in yesterday’s USDCAD video.
That’s affecting pairs like GBPUSD and EURUSD today in dramatic fashion.
The pound is down 100 pips so far today and breaking below a significant area of support.
We’ve seen GBPUSD range between 1.2500 and 1.2800 since December.
If this week closes below 1.2535 and especially 1.2495, it would represent a potentially significant breakdown for the pound.
It would expose levels like 1.2375 and 1.2200.
We’re also seeing the DXY in rally mode today, breaking above the 105.80 resistance level, at least intraday.
But where today’s session closes is what will drive next week’s price action.
As mentioned earlier this week, I favor dollar longs while the DXY is above 105.00 and the US 10-year yield is above 4.335%.
New “Fakeouts” Trading Course Launches April 19, 2024!
Join our elite trading program and save 80% on lifetime access! Sale ends soon!
