GBP/USD: Theresa May ‘close to a deal on Brexit transition’
Every market reacts to new information in different ways, some will jump in a straight line and stop, others move in short sharp pushes and others will exhibit pull backs after an initial jump before continuing. Therefore, knowing your market has a big impact on how you will enter on new information and perhaps of even greater importance prevents entering in the wrong phase of the move.
FX markets are impacted directly by a country’s Macroeconomic and Geopolitical situation and are often the first to react – the GBP/USD has been the go to market for comments relating to Brexit – for this reason a large number of participants rush to enter causing a price spike which regularly fades as late-comers exit positions entered at adverse prices giving a pull back where more buyers get the opportunity to take the trade. Recognising this order flow pattern firstly prevents jumping in at the high but also provides an entry and target for a continuation trade as the pullback finds a bid and often some reloading of bids before moving higher.
Theresa May’s comments that the UK is near a deal on Brexit Transition and the resultant move are examined in this Axia debrief looking particularly at the order flow that gives an entry for the continuation of the move.
Further Momentum strategies based on order flow are considered in depth in Module 12 of the Axia Futures Price Ladder course where multiple drills give you opportunity to trade them and perfect these skills.
If you are looking to develop a career as a trader within a professional and successful environment, then the Axia Futures 8-week Intensive Trader Training is the most comprehensive in the industry based upon skill development within the proprietary futures trading environment.