As we prepare for yet another Brexit dominated day, the British pound was one of several currencies in focus in the London forex trading session this morning, along with the euro and the New Zealand dollar.
For the euro, it was the early move higher which caught the eye with the currency rising strongly in the faster timeframes and on the currency strength indicator, with the Canadian dollar moving in the opposite direction with equal speed and creating a nice trend. Then as London opened, volatility became the order of the day with a potential reversal setting up.
This was also the case with the New Zealand dollar which had been rising strongly and reached an overbought condition, clearly signalled on the TradingView charts with the currency strength indicator confirming this across three timeframes. Taking a reversal trade requires patience and wider stops, but reverse it did in due course.
Finally of course to the British pound, and here the GBP index on TradingView highlighted the reversal which appeared as the London session opened with a strong move higher for the currency across all the timeframes. Whilst the pound index reflected this on the chart, the currency strength indicator also confirmed this sentiment on the 10m, 20m and 30 minute timeframes.
A great session with many trading lessons for all forex traders.