- 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
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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