I know lot of guys are long here I am just illustrating contrary point of view to consider.Nobody knows the future but I like taking as many factors as possible.
1.For GU to break 6720+68+ requires EU to break 3770+38+
This is based on correlations.EU can't go down significantly and have cable go up.May happened on news events but they get in sink soon.
Draghi is sort of desperate to push back Euro to 1.35.High Euro hurts everyone in EZ except Germany
2.Recent fall technically broke Andrews pitchfork channel and technically lower TL is broken.This has a very good chance of going 36 and lower.
To me I am not even concern with UK fundamentals right now.Its more about EU.
If you think GU will reach 1.70 then where do you think EU will be? 1.40?
Ask a simple question could EU reach 1.40 under present fundamentals with Italy,Spain,Greece,Portugal 30-45% unemployment?
With Euro elections coming up in MAY? If you say Yes then by all means go long.I will stay Bear.
1.For GU to break 6720+68+ requires EU to break 3770+38+
This is based on correlations.EU can't go down significantly and have cable go up.May happened on news events but they get in sink soon.
Draghi is sort of desperate to push back Euro to 1.35.High Euro hurts everyone in EZ except Germany
2.Recent fall technically broke Andrews pitchfork channel and technically lower TL is broken.This has a very good chance of going 36 and lower.
To me I am not even concern with UK fundamentals right now.Its more about EU.
If you think GU will reach 1.70 then where do you think EU will be? 1.40?
Ask a simple question could EU reach 1.40 under present fundamentals with Italy,Spain,Greece,Portugal 30-45% unemployment?
With Euro elections coming up in MAY? If you say Yes then by all means go long.I will stay Bear.
In trading, you have to be defensive and aggressive at the same time