Brexit jitters
I've got some bad news and I've got some good news. Let's deal with the bad news first, as I like to save the best things to last as it always gives you something to look forward to ;-).
The bad news is we have Brexit Deja Vu
Once again Brexit headlines begin to build to a frenzy pitch, will they or won't they accept Theresa May's Brexit deal. In an almost repeat of December's vote - which was scheduled for December 4 - it seems that Theresa May's Brexit 'deal' is going to be rejected again. We now have until January 15 to see if that will in fact be the case. It seems like a near repeat of last year's failed vote. Accept this time we have the pantomime scenario of Theresa May desperately trying to conniving Parliament that her deal is as good as it gets.
Ok, so what's the good news
The good news is we are approaching the 100 Daily EMA
Ok, I may have overplayed this whole good news, bad news theme a bit, but there have been some really good trades off the 100 and 200 EMA's r, so they are worth pointing out. The GBP/USD has appreciated recently on the back of Jerome Powell's dovish shift and the DXY has now broken down through it's 100 daily EMA (the first time since September 2018), so some more USD weakness should push the GBPUSD up to the 100 and possibly the 200 Daily EMA too. However, Brexit woes will push it back down again unless there is a breakthrough in negotiations (looks unlikely at the moment).
Looking at the Daily Chart for the GBPUSD pair below you have the confluence of the 100 and 200 EMA's at the R1 and R2 weekly pivot level on the Daily chart.. Both of these areas offer excellent places to enter short with any further Brexit woe (hint: more Brexit woe is expected). Entries highlighted below.
