Spiking Energy Prices in Europe Create This 1 Trade to Make Now

June British pound (B6M26) futures present a selling opportunity on more price weakness.

See on the daily bar chart for the June British pound futures that prices are trending lower and this week hit a four-month low. The bears have the firm overall near-term technical advantage.

Fundamentally, the Iran war has hit European economies much harder than the U.S. economy, especially the spike in energy prices in Europe. That’s bearish for the British pound against the U.S. dollar ($DXY).

A move in the June British pound futures below chart support at this week’s low of 1.3156 would become a sell opportunity. The downside price objective would be 1.2650 or below. Technical resistance, for which to place a protective buy stop just above, is lcoated at 1.3400.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

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