USD Seen Weaker Against GBP

Dollar is being seen weaker against Pound after the Trump speech. GBPUSD rallied hard after President Elect Donald Trump gave a press conference. In the next few months, we believe whenever President Trump is going to make a press conference you will see a lot of volatility in the market. Read about allegations of currency market manipulation. Take a look at the following screenshot of GBPUSD H4 chart.

GBPUSD Rally

Now in the above screenshot you can see GBPUSD rallying hard after Trump speech. Many traders are calling it the Trump Trade. If you read the candlesticks in the above chart, you can see a bullish candle that was made in the last hours of last week. This bullish candle is a sign that GBPUSD will be bullish next week. GBPUSD can only be bullish if USD weakens against GBP.

We use candlestick patterns a lot in our trading. Candlestick charting was invented by Japanese rice traders in 1600s. But surprisingly you will find them working even in today’s market. Why? Simple! Candlesticks just depict market sentiment at a particular moment of time. A candlestick high shows how much price the buyers were able to take high during the last 4 hours before sellers stepped in and drove the price down. In the same manner a candlestick low shows how much price sellers were able to take down before buyers stepped in. Candlesticks depict the behavior of buyers/sellers in the market. You should master candlestick charting if you really want to become a good swing trader.

You can take a look at our Candlestick Trading System. We use candlesticks a lot in our trading as said above. We trade candlesticks on H4 timeframe. On lower timeframes like M30 and H1, candlesticks are not that reliable. You will need to learn how to use candlesticks in an unconventional manner if you want to beat the market consistently. GBPUSD is a good pair for swing trading. It is a highly volatile pair. You will have to respect GBPUSD a lot if you want to make pips trading it. GBPUSD can change direction suddenly. So take risk management seriously if you want to trade it.  If you are interested in mastering quantitative trading, you should take a look at our Kalman Filter for Traders Course. In this course you learn how to build a Kalman Filter and use it in trading. Kalman Filter is much better than a moving average as it closely follows price as compared to moving average.

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