• U.S. Treasury yields surged to one-year high
  • Political tension between the U.S. and Iran
  • GBP/USD failed to breach 1.41 handle
Chart 1: GBP/USD D1 chart

The U.S. 10-year Treasury yields surged to a one-year high above 1.6% last night, causing a strong sell-off in the stock market that led to the strengthening of the U.S. dollar. Also, earlier today, military airstrikes were directed in Syria against the Iran-backed militia facilities. This attack was carried out in response to the recent rocket attacks in Iraq against U.S. targets. This political tension led to the demand of USD as market participants seek for safe haven assets.

Currently, GBP/USD is bouncing down from the 1.41 handle, a 2.5-year high level. With the increase in demand for the USD, it is unlikely for the level to be breached. Our technical indicators are also indicating a downward momentum. Thus, look for selling opportunities of GBP/USD.

Trade Setup for GBP/USD (D1)
Sell Stop Order at 1.38800

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By Gim Hong Lee

Gim Hong has been a full-time currency trader for more than 2.5 years, focusing on day and swing trading of major currencies and their crosses. He is a frequent contributor of currency and economic analysis in Forex Trading Asia. Graduated from Columbia University in the City of New York with a bachelor’s degree in applied mathematics and statistics, the nerdy side of Gim Hong enjoys learning about data analysis, machine learning and their applications in currency trading.

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