GBP/USD, often referred to as “The Cable”, a foreign exchange term used to describe the British pound vs the US dollar, is one of the oldest traded currency pairs. In July of 1866, after an earlier failed attempt, the first reliable exchange rate between the British pound and the US dollar was transmitted between the London and New York Exchanges. Optic fibre cables accompanied by satellites handle the Transatlantic communications today.
On the 4th of February 2019, The Global Financial Engineering Predictive Modelling System(GFEPMS)#6 indicates a potential bearish move on the GBP/USD with an entry trigger at 1.3034 and an initial Stop Loss at 1.3125. The system also predict a Target Profit at 1.2893.
The above data give us a Reward to Risk Ratio of 1.5:1. We reject this trade since we were aiming for at least a Reward to risk ratio of 2:1
The Target was reach on February 7, 2019 after GBP/USD trade to a low of 1.2853
The current price for GPB/USD is now at 1.2946
The model is now predicting a bearish move for GBP/USD if price hit 1.28976 targeting a low at 1.2850 or a Bullish move if price hit 1.2996 targeting 1.3150
We need to see some positive momentum when it comes to the Brexit deal for the GBP/USD to rally to all year high.
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