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GBP/USD Trading 16-20 Dec 2013 live with Matthew Taylor

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This week's strategy is on the GBP/USD. The pair is consolidating with a potential for a move higher so for now we will carefully buy puts at lower levels.

GBPUSD_WEEK3

Comments

Matt T.'s picture

We are nearing the close of the daily GBP/USD binary option and for now we are in the money on our daily call at 1.6260. We will remain cautious to trade before the data out of the UK tomorrow. A daily close above 1.6260 will certainly help us cement our strategy. Meanwhile the chart is looking like its bottoming out for now. A break above 1.6320 will be needed to start buying calls on the hourly charts.GBP/USD Chart 17 Dec 2013

Matt T.
Matt T.'s picture

We had a great day with our strategy. We booked profits on our daily option yesterday and have bought calls on the break above 1.6320 so everything is going great for now. We remain vigilant about the reaction from the Federal Reserve statement published yesterday and will certainly look for more chart developments to take decisive action. However if the price goes down to 1.6350 we favor buying daily calls again.GBP/USD Chart 18 Dec 2013

Matt T.
Matt T.'s picture

Another day and our strategic call is 30 pips in the money a couple of hours before expiry. We advised buying daily calls around 1.6350 yesterday. So what shall we do next? Well tomorrow morning will give us a clearer picture so stay tuned. We will publish a review in the early European morning. For now the GBP/USD pair is consolidating around 1.6380 - still looking modestly bullish, but still - a base might build up around 1.6335.GBP/USD Chart 19 Dec 2013

Matt T.
Matt T.'s picture

It is happening - the pair is building a base around the 1.6325-35 area and we will sell puts below 1.6325. Let's look at the chart - we had no problem cashing in our daily option last night, price has dropped steadily from highs in the New York session around 1.6380 and a test to the bottom part of the range happened in early Europe. Once again - just look at the chart and follow a break of 1.6325 with buying puts on a daily basis.GBP/USD Chart 20 Dec 2013

Matt T.