GBPUSD (10/5/2020) (MIDAZ TRADING STRATEGIES)

10 May 2020

GBPUSD
Last week our call on short for this pair are correct, The pair went to low of 1.227, Near the demand zone were bulls help stabilize the pair.

On Technical Analysis:
-Momentum (Bearish)
-Volumes last week was in mini wave below average
-CCI ( bearish)
-50 SMA ( Bearish)

Trend Analysis:
Weekly Chart, Support level at 1.216 (strong)
Strong Resistance at 1.262 (Double Top)
Daily chart, Higher lows with No change in highs
4H chart, Strong Bearishness when price are above 1.242 area.

Fundamentals :
1)UK Prime Minister Boris Johnson is expected to explain any changes to lockdown measures and launch a threat level alert system.
2) Heat Waves in the UK are not enough to Kill the virus.
3) UK GDP coming up this Wednesday , with consensus of -7% ( very bearish )
4) UK-EU 2 weeks Trade talk to resume on Monday ( Fishery negotiation forecasted to be rough as UK believes they have to upper advantage in the talks. (Bearish)
5) Stock market rallies last week did help the pair to stabilised at the current level. ( we believe stock market is being irrational despite bad economic data)
6) UK death rate rise to the highest in Europe last week b4 announcement on easing lockdown ( If second wave of the virus were to hit the economy after easing restrictions it would be disastrous)

Our call : Short if price breaks daily trendline 1.233, or if price open higher this week above 1.25.
Exit on strong weekly support at 1.256.

10 May 2020

Not

typo n last sentence , should be 1.216