GBP/USD, the Pound Dollar shambles. for 15/08/2019

#Gold #DOW #GBPUSD Our previous report (link) proved accurate and now, we’re a little gloomy. Sterling is starting to exhibit similar life expectancy to Epstein’s prison guards. On the other hand, after Brexit, the USA are bound to find UK imports quite competitive. If only the UK still had a reasonable manufacturing industry!

The immediate problem Sterling now faces is an expectation of a “bottom” on the current cycle at 1.1677. Unfortunately, there’s a heck of an argument suggesting things could get worse, substantially worse, as the Big Picture indicates a real bottom should occur at 0.9922 eventually. In addition, there’s the issue of the RED uptrend which ridiculously dates back to 1985.

We’re perfectly aware some readers were not even born when this uptrend commenced 34 years ago but unfortunately the market appears not to care about the age of a faded RED line. The inset on the chart highlights what has happened in the last few days since the trend broke. Visually, there can be little doubt the market is perfectly aware of this line. At time of writing, it is at 1.20807 (roughly) with the currency pairing requiring to CLOSE a session above this to indicate it has all been a dreadful mistake.

Visually, this appears unlikely, thanks to the market acknowledging this historical trend. On the plus side, anyone opening a short and hoping for the best (or worst) can emplace a fairly tight stop at 1.2106, this being the highest achieved since the trend broke. In theory, moves above this level allow for 1.2327 initially with secondary, if bettered, calculating at 1.2475.

When a major trend such as this breaks, we recommend not holding your breath while awaiting recovery!

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

9:47:56PM

BRENT

58.86

               

Success

9:49:50PM

GOLD

1516.64

1499

1495.5

1486

1518

1524

1528

1535

1506

Success

9:52:10PM

FTSE

7102.8

               

‘cess

9:54:05PM

FRANCE

5228.7

               

Success

9:57:05PM

GERMANY

11422

               

Success

10:02:55PM

US500

2835.07

               

Success

10:05:34PM

DOW

25422.3

25407

25319

25096

25690

25745

25846.5

25993

25600

Success

10:10:10PM

NASDAQ

7468.89

               

Success

10:12:23PM

JAPAN

20118

               

Success

 

14/08/2019 FTSE Closed at 7147 points. Change of -1.42%. Total value traded through LSE was: £ 5,950,937,323 a change of -4.59%

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