Political Uncertainty, Dollar Weakness & A Projected Correction

Despite being a technical trader, there are some fundamental factors floating in the background of today's trading idea.

1) We saw weakness on the GBP today due to some political uncertainty & investors having concerns over the stability of the UK's leadership and economic direction.

2) We saw a drop in the ADP Non-Farm Employment Change for the US Dollar today which is starting to look like a trend rather than a one-off.

Why this is important is because, despite the very bearish day that the GBPUSD had today, I don't think the GBP reaction is as relevant as it's shown and I do think the USD is weaker than it's shown on this particular chart, due to the reactions that we've seen on other crosses.

All in all, that this means is that I wouldn't be shocked to see today's move corrected and price is at the perfect technical level to do just that.

If you have any questions, comments or opinions, please don't hesitate to leave them below.

Akil