The pound is broadly mixed when crossed with certain pairs, but for right now, GBP can be very lucrative right now if you play it the right way. Here are some GBP pairs to trade that could help your portfolio in this time of crisis.
What To Note
GBP usually acts as one of the risk-on currencies regardless of the 50bp interest. So, in the short term, any kind of movement to the upside is reflecting the increase in risk appetite by investors. The pound also somewhat mirrors the performance of US equities, or at least the direction because they both behave similarly on sentiment.
GBP Pairs To Trade
GBP/CAD (Short Bias)
GBP/CAD breaks under support to a lower low on the 1D. Canada's loonie is probably going to vastly outperform others in the short term because of the lower oil supply around the world and skyrocketing oil prices. Price could come down to 1.68400s before seeing any kind of support on this timeframe. That recent death cross is another indication that the trend is now bearish.
GBP/JPY (Long Bias)
GBP/JPY sank to the 200 DMA before turning back to the upside on the day. The pound was likely suffering due to the trade sanctions placed on Russia, but overall there is still a long trade in the making as support in the 152.600s looks promising. GBP seems like a good long play against the yen because of the monetary measures (higher interest) the government is already taking.
GBP/AUD has fallen nearly 4.8% from the highs in January and over 3% since the conflicts in Russia-Ukraine borders. Gold has been outperforming because of this which is what is helping AUD gain demand. A close below support suggests more downside, and the pair is likely up because equities are as well.
GBP/USD (Short Bias)
GBP/USD is likely going lower should the fighting continue in Ukraine. Despite the more hawkish policy on the pound, this probably won't matter in the short term. The recent lower low makes the pair look bearish in the short term while investors would flock to the USD if concerns persist.
Try for FREE!
or get 20% off the full version using code "READER"
On Monday, May 23rd, US President Joe Biden unveiled a new trade pact with twelve Indo-Pacific countries called the Indo-Pacific Economic Framework (IPEF). The launching of this deal, coupled with Monday’s news that the Biden administration is considering the merits of rolling back tariffs on imports from China, saw the Dow close nearly 500 points […]
This week, I took a trade on the SPX500 that ended up being a successful one by the time it closed. We caught a 29 point move when it was all said and done, and here is the breakdown behind it. Reasons For Buying SPX500 On May 23, I sent out an alert to the […]
One of the forex market's worst performers this year now has the potential to become one of the best plays in 2022. On the day, euro is up and is performing stronger against the USD than any other currency as of now. EUR/USD is up 0.36% today. Euro To "Positive Territory At The End Of […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here