This table shows financial instruments that had a 15% change in its non-commercial net position from one week to another, so things that are gaining momentum and should give us opportunities to trade with a direction in mind.
GBPUSD BULLISH BIAS
Investors closed all their shorts and for the second week are on the long side. I am talking about bullishness on GBP since this report. So we may be exactly at half of the movement, projecting the forex price to 1.40. Local where the drop started, right when Trump said that we will see a stronger dollar and when Brexit talks started to go throw the sink.
Boris Johnson will host the president of the European commission, Ursula Von Der Leyen, in Downing Street this week as he prepares to take Britain out of the EU at the end of this month, kicking off a race against time to secure a free trade deal. Source: The Guardian
We have elements supporting this positioning, so I am sticking to the bullish side.
It’s impossible to argue and fight with this strong bullish trend, today morning we already took a position aiming 1.4. Speculators cut all their shorts and now are adding long at the same pace the shorts were removed.
I used the same image from the last report, so this way you can see that I am following the proposed plan. I will add longs if the price goes above the “Line in Sand” level. You also can see where I took a long position.
GOLD POSSIBLE TOP
This is one strong cot signal and to help our trading, speculators log net position is near an all-time high, super extreme! Let’s add to this the fact that the USA-Iran situation does not look like it will escalate. Take a short here is a great opportunity.
The last time we have a similar positioning gold dropped 1147 pips in the next weeks. I was already bearish on this, with no trade triggered, now I have reasons and a good place to stop my positions in case I am wrong.
The protection line here is 1600 handles. If this level is not taken we are ok to go down, honestly, I expect gold much lower, near 1360. You can see it here in this Forex Gold Article I posted months ago.
Friends, that’s it! The week started the way I like, few but strong opportunities. So let’s go there friends and take these two trades! If you want to discuss more this, send me a message on twitter and leave a comment here.
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My best regards,