On Friday, the House of Commons rejected Prime Minister Theresa May's EU Withdrawal Agreement for a third. Now the UK will receive from the EU an Article 50 extension until April 12. At that point, PM May will have to choose between requesting a much longer extension that would require participation in the EU parliament elections or a so-called no deal Brexit. As expected, the British Pound dropped due to further uncertainty.
As a result, the GBP/AUD dropped as well and right into my daily demand zone that I have been waiting for. But just to recap the trade set-up from a week ago.
If Theresa May does step down, I anticipate a short sell off in the Pound and because I missed my entry on GBP/AUD on Friday, this may be the event to get in and take it long
Weekly Chart (Trend Time Frame) – the trend is up.
Daily Chart (Entry Time Frame) – the chart suggests to go long on a pull back to the daily demand at 1.8250.
Forex Analysis Report 3/24/19 - Eyeing A Position Trade In GBP/AUD
Unfortunately, I missed the entry as I didn't set-up the trade on my platform before hand.
But if price is able to penetrate the daily demand zone a bit more, there is a 4 hr demand zone where I can still get in the trade to go long.
I was definitely caught off guard as I wasn't expecting price to get to the daily demand zone on a Friday. However, with Brexit's looming and all the uncertainty, I should of known that the volatility in the British Pound, anything would be possible. Be sure I want missing this set-up going into the week ahead.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
