GBPUSD
Yesterday it was reported but 100 conservative members of parliament will be voting down Theresa May's Brexit proposal to the UK Gov't. The vote is due to be decided on the 11th of December. The expectation at present is for the deal to be rejected. However, keep looking at the polls to get the up to date information on that. Politics is a tricky way to trade the currency markets. However, for now bearish pressure will remain on the GBP.
The US dollar is under pressure after Jerome Powell gave a surprise dovish speech and the FOMC minutes showed that a couple of Fed members started to express concerns that 'further gradual rate hikes' could restrict economic growth. So, from my reading around there seems to be a few different views out there. Some say that this a dovish tilt by the Fed and I am inclined to agree. However, what happens from here is likely to be data dependent, so I am not expecting the USD to be falling quickly away on the back of Powell and the Fed's minutes. However, USD weakness may provide a retracement on the GBPUSD back up to a better level to sell from. The Trump and Xi meeting is also coming up in Aregntina on the weekend, so caution is the name of the game. However, Trump can easily escalate the situation, so it makes most sense to wait until after the weekend to initiate a position, unless Trump shows his negotiating hand early. His method so far is to bluster ahead of meetings (think of the way the NAFTA, now USMCA, was handled by him)
For a GBPUSD short I like the 1.29000 level on the 4 hour chart as it is just under the 200 EMA, the big round number of 1.2900 and the R1 pivot point. (you can Set up an alert here for free at 1.2900 and see how price reacts at this level). Stops can be placed just above the 200EMA on the 4 hour chart.
