i- Forex Exchange

Currencies are looking pretty stretched intraday and this market is one of the most bid on the day following a more hawkish than expected Bank of England Minutes. However, at the end of the day, we don’t see any real change to policy despite the change in the vote, and we would expect to see any rallies from the news to eventually be offered should they continue into North American trade. We are well aware of the key topside resistance by 1.6300 and have therefore placed our entry above the figure in the event that we see some stop hunting above the figure. If the level is taken out and stops are cleared above 1.6300, we don’t at that point see rallies extending much further and will then look to get involved. At that point, hourly studies will be well overbought and the ATR will have been exceeded by a significant margin. STRATEGY: SELL @1.6330 FOR AN OPEN OBJECTIVE; STOP 1.6430. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON WEDNESDAY.