A wretched day for the pound continues.

The pound is continuing its slide today and there’s no signs of it stopping.

We’re under 1.4100 now to a low of 1.4090 but we might get some repsite aorund 1.4070/75.

GBPUSD H4 chart

GBPUSD H4 chart

That level has been a player all the way back to Jan, so it’s shouldn;t be dismissed. We’re now down some 170 pips door to door and that might mean we’re near a stretch point. End of month, M&A action for the pound, reduction of trade war fears boosting the dollar, could well be the main driver that’s making the quid stand out from the rest.

I tried the catching the falling knife trade earlier and lost a couple of fingernails rather than fingers, mainly due to going small on mytrade size. The 1.4075 level is one I’d consider trying again but still only small and with a tight stop. Things look a bit busier on the tech from from there down through 1.4040 and into 1.4015/20, 1.3995/4000 & 1.3975/80. There’s nothing wrong with trying to catch the knife as long as you plan properly, use the levels to lean against, and keep your risk low if you’re wrong.

Update 13.14: Well that hasn’t taken long and we’ve broken 1.4070 already to 1.4066. I didn’t get a chance to even think about buying at 75 so I’m sitting on my hands now as this is looking rout-ish.

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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