BIG MOVERS
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.
players positioning
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.
TRADING PLAN
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.
NET POSITION
COT CHART
price charts
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.
If you want help to manage the trade, or want to get trading signals and help to develop your skills as a trader, join me in the trading room I created for traders interested in risk management and consistent growth of capital. No Lambos or other bullshit talking! It’s a place to discuss trading and improve ideas. You also get alerts for supply/demand/pullback, all the management for the calls I post here, other trades that are not in the forex weekly report and access to the cot tool. You can join here, and if after the first week you don’t like it, I will refund you! The service has great reviews, go check it!
My best regards,
Leo Hermoso.
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