With the Fed adding to the uncertainty in the market, Ryan Littlestone from ForexLive, shares tips to trade these volatile markets.
Fed driving the trade
Littlestone speaks on the rates and the Fed added uncertainty, noting that this confusion around the interest rate hike is bad for trading.
While patience remains the key, Littlestone prefers looking at wider charts and watching the ranges to identify trades. He explains that there is nothing wrong with coming down to smaller timeframes – be it a Monthly or a 5 minute chart, it all winds down to the levels. He adds that a trader should trade the levels with confidence and not worry about the timeframe. Littlestone prefers coming down from longer timeframe charts to shorter ones to identify key trading opportunities.
Bullish on the Cable
Littlestone explains how he has been a GBP/USD bull, buying the cross from 1.52 to its dip lower. He maintains a long term buy approach due to the interest rate outlook in the UK. He believes that the MPC members expecting a rate hike is enough a cue that the Bank of England will hike rates later.
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