Monday Sep 12th FX gaps

Morning folks

Well if last week was slim pickings this week is a famine! Very disappointing and surprising given how the stock markets reacted on Friday night to the Fed's statement on rates.

Out of 10 pairs on my watchlist, there were only 8 gaps and all of those were < 10 pips. Given the spreads before 7am, that made none of them tradeable. Only the USDJPY opened to a tradeable level (gap less spread) so I've taken a position in that to close.

As of 7.15am, only 2 gaps remained open - the USDJPY and the GBPJPY. The spread on the GBPJPY is slightly larger but the spread is almost 20 pips killing any possibility of a trade on that pair atm.

My gap watchlist table looks as follows atm:



Gaps remaining open from previous weeks:

1. GBPJPY gap dated Monday 22/8. This gap opened out to a maximum (so far) of 780 pips just before last week, but pulled back last week to close that distance by around 38.2%. Since its high it has put in a couple of lower highs & lower lows on the 4 hr chart, suggesting it is now trending back toward the gap. I will be more confident it will do that when it breaks last week's low at around 135.00, which is about the 50% fib retrace level. It first needs to close today's gap...

2. The 3 GBP Brexit weekend gaps. These 3 gaps have now all made good progress towards closing. The AUDGBP & GBPEUR have both retraced back to the 61.8% fib level (retraces of 300 out of 520 pips and 540 out of 720 pips), while the GBPUSD came as close as the 75% retrace level (a retrace of 650 out of 880 pips) last week before it opened again slightly on Friday night's Fed news.

Cheers, Sharks.