A1 Trading Company

Ticker tape by TradingView

August 17, 2022

Top 4 Pairs to Sell Today

Michael J. Donoghue
Top 4 Pairs to Sell Today

At 2 am Eastern Time today, the United Kingdom’s Office for National Statistics reported that annual inflation has officially crossed into the double digits for the first time since 1982. In July, year-over-year CPI in the UK beat expectations by rising 10.1%, while year-over-year Core CPI (which excludes volatile food and energy prices) similarly beat market forecasts by increasing 6.2%. While high inflation of this magnitude is typically a bullish indication for a currency, implying rampant growth which must be slowed through higher interest rates, there is reason to believe that is not the case here. This is primarily because a) the UK’s economy is contracting, and b) the Bank of England has thus far been too timid to be effectively hawkish. With this in mind, let’s discuss the EdgeFinder’s top 4 pairs to sell today, which happen to all be GBP pairs.

1) GBP/USD

Top 4 Pairs to Sell Today

This pair makes the top of the bearish list, earning a -8 or ‘strong sell’ signal from the EdgeFinder. This is because the US economy’s fundamentals are better than the UK’s (except for severity in GDP contraction), trader sentiment heavily favors USD, and both trend reading and seasonality (historical performance this month) indicate bearishness.

2) GBP/CHF

Top 4 Pairs to Sell Today

This pair also earns a ‘strong sell’ signal, or -6. Most variables favor CHF due to the Swiss economy’s resilient performance in contrast to that of the UK. COT data and interest rate divergence are the only categories that don’t support this signal because institutional traders have similar sentiment regarding these currencies, and the Swiss National Bank has not had to confront high inflation.

3) GBP/CAD

Top 4 Pairs to Sell Today

Earning yet another -6 or ‘strong sell’ signal, all categories but two favor CAD due to Canada’s economic stability and hawkish central bank. Only seasonality favors GBP, along with the UK’s superior unemployment rate (currently 3.8% to Canada’s 4.9%), though Canada’s has been declining.

4) GBP/AUD

Top 4 Pairs to Sell Today

This pair earns a milder, but still significant, ‘sell’ signal at -5. All listed fundamentals lean in AUD’s favor, while both institutional and retail sentiment remain neutral, with only seasonality supporting GBP.

A1 Edgefinder

Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.

10% off code: 'READER'

GET ACCESS NOW

VIP discord

Trade Alerts, Strategies, Chatrooms & more!

10% off code: 'READER'

LEARN MORE
What To Expect From Today's FOMC

Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]

Read More
The Art of Not Trading

With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]

Read More
Best Currency to Buy?

As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]

Read More
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
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram