Daily Alert – Wednesday 24th February 2021: GBP on seven-week winning streak

Mark NugentDaily Alert, Feb 2021

Daily Alert – Wednesday 24th February 2021: GBP on seven-week winning streak

At the midweek point we see sentiment hovering around “indecisive” with a wee blob of positive risk-sentiment yesterday. But not every asset needs global sentiment to drive pricing. The GBP continues to soar and is in danger of returning seven straight “up” weeks. I traded GBPUSD long on Monday and it closed earlier today for a gain of around 2.2% on a risk of 1%. The trade closed as the weak USD is experiencing an “up” day. The theme of the trade is GBP strength and as the GBP remains strong I will have another look for GBP long trades tonight.

Elsewhere, Fed Chair Powell says he’s not concerned by rising bond yields, which of course makes government debt more expensive. The ECB signalled on Monday that they ARE concerned by rising yields.

The mood in the UK was bolstered on Tuesday by a government statement saying lockdown easing could be accelerated if vaccinations continue to move at pace.

It is a sparse calendar for the rest of the week.

I will be back on Friday with a video of my GBPUSD trade and a review of the week.

Members can see the video in the VIP Club area HERE