FX CHART OF THE DAY: MEAN REVERTION DOWN RISK ON GBPUSD
GBPUSD is trading close to the 1st standard deviation from weekly (120-h) mean, but it has no slope.
Volatility is not expanding (measured by 3.2 standard deviations from weekly mean) and is also flat.
Thus there is not enough slope/expansion to show probability of trend - the Cable is likely to revert to the mean.
Traders can pick shorts at or close to the upper 1st standard deviation (at 1.5610) with stop above recent highs (1.5665) and target at the weekly mean (1.5550)
Traders should also mind US calendar news coming out 12-30 GMT
Volatility is not expanding (measured by 3.2 standard deviations from weekly mean) and is also flat.
Thus there is not enough slope/expansion to show probability of trend - the Cable is likely to revert to the mean.
Traders can pick shorts at or close to the upper 1st standard deviation (at 1.5610) with stop above recent highs (1.5665) and target at the weekly mean (1.5550)
Traders should also mind US calendar news coming out 12-30 GMT