GBPUSD Fell Sharply On Current Account Report
By Benny Nardino | June 30, 2009
Today could be call “the day the wheel fell off” on cable, GBPUSD as it took one step forward and three steps back in its trading activities today on economic reports. Is this the true state of our economy?
The day started so well with Nationwide report posting better than expected. The pound sterling, GBP gave a sterling fight on the dollar by advancing to 100 pips at 1.6742.
Current Account Report GBPUSD Chart
The UK current account report posting a deficit of GBP 8.5 billion in the first quarter of the year according to the Office of National Statistics.
Economists pegged their expectations at a GBP 6.7 billion deficit but when the report . This accounted for 2.5% deficit from fourth quarter report.
From a forex trading perspective, this equated to a frenzy of selling where it bottomed-out at 1.6420.
We have since conclluded our trades for the day with great profit margins but how did you do for the day? Share your thoughts.
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Tags: Pound Sterling, Unilateral Transfers, todayRelated posts
GBP USD Today Analysis
By Rox Sweetman | June 25, 2009
What a difference a day makes. Isn’t it ironic that yesterday we were talking about the 1.6560 levels for a possible further up trend? Well as always, events outside the marketplace seem to always have a way of buffetting market setups in the wrong direction.
However, last night our Cable, GBPUSD overview revealed a possible head-and-shoulders pattern emerging from yesterday’s trades. The pounds broke-down at 1.6575 just a tad above the first resistance, level R1. Nevertheless, this move broke through the pivot of 1.6405 - the 50% level of the Fibonacci before pulling back.
Nonetheless, from the chart analysis below, we anticipate GBP USD retracement back to the 1.6450 which is also the Fib-38% mark before any further low. This level is very crucial to the overal developments of the chart’s pattern for today. Click chart to enlarge.
GBPUSD Analysis
With the value of the sterling and the dollar rates vaccilating around the pivot level at 1.6461. A rise above the 1.6560 of yesterday seem a long way off for now. One has to pay attention the above pattern formation as this could make or break your trading account today. Yesterday’s Bank of Enland Governor’s criticism of the Government of the vast debt problem is also a sign of a crack in the in the seal. An indication that all is not well beneath the surface. We shall be going short around the 1.6450/6430 range. We are watching.
How do you see the day? Do you perceive the market heading up north or south? Please comment below.
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Tags: Sterling, euro usd, RetracementRelated posts
GBPUSD Risks Sentiment Rises To 1.70
By Humphrey Bo | June 24, 2009
LONDON: Until recently, the only risk worth taking was selling cable, GBPUSD. Is that still your view?
At least not from the forex marketplace. The last few days have seen the risks appetite risen to level that there is a quiet optimism among City traders that the pound is heading towards the 1.70 in the near-term.
The past few days and weeks have seen some tremendous trending moves for handsome intraday and swing trading profits. Cable has constantly pulled-in an average of 125 pips daily.
GBPUSD is powering ahead today from yesterday’s low of 1.6204 and is now testing strong resistance of 1.6560. Reinforcing this sentiments, BNP Paribas says “.. a clear break through the 1.6560 resistance opens topside risks towards 1.70″. GBP/USD now trades at 1.6559, from the day’s low of 1.6441. See our 60-min. chart on Heiken-Ashi indicator with price action as true indicator. (Click to Enlage chart).
However, we are still trading this with great caution as we do not want to be carrying the can on reversal.
Do you agree with the shared view here? Challenge these thoughts or comment below.
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Tags: Forex Trading, True Indicator, Bnp ParibasRelated posts
How Did GBP USD Ends Today
By Benny Nardino | June 17, 2009
What a trading day. Was it was worth the wait after all? You bet it was. Patience had always been a great attribute in forex trading. Today we needed it in abundance in a volatile GBPUSD.
Our earlier post, 3 Reasons For Trading The Pounds today from my colleague sighted some great points from our cable, GBPUSD analysis. This was our end-of-day daily review yesterday. He also highlighted that, “..if this move breaks down it could be huge..”
None of us could have imagined the size of the move. Below is our traded chart and wondered why it’s our fave trade of the day?
After unemployment reaching a twelve year high and unanimous MPC rate unchanged votes the pound’s fall was inevitable.
Cable Violates Pivot
It was one of those text-book trade and that is what made it a choice trade for all.
At the beginning strange things happened. We waited all morning for the news before taking any position.
Just before we pulled the trigger the computer crashed and could not make an entry. We eventually too a short-position at 1.6390.
What was also interesting was this new tool we were experimenting with from Interbankfx called candlesticks pattern recognition, CPR. Whilst the problems were unfolding we were flagged to short on the hourly time-frame on GBPUSD reaffirming our bias. It also calculated our stops and take-profit zones. All we did was monitor and continuously adjust our stop-levels.
We were taken out at 1.6230 as the market changes direction. Another key point was that as we approach S1 of 1.6211 we kept the stop-loss tighter to lock-in profit. We accrued 160 pips on cable alone at the time of writing today.
What is your story for today? Share with us.
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3 Reasons For Trading The Pounds
By Humphrey Bo | June 17, 2009
Suppose I told you there is a day you could have the British pound sterling offering you great opportunities would you take it? Would you believe me at all? Did I hear you say yeah with a pinch of salt? Let’s find out why.
Well, today posed is one of those days where activities that could sway the pound sterling either way existed. Last night our analyses we came up with this conclusion I share with you today working from our known information into the unknown.
Here’s why. Today there’s;
1). Unemployment monthly report will be released. The unemployment numbers is an important indicator of the UK overall economic health because people are more likely to spend when they have jobs than when out of work. With so many queing for work this look grim for now. We anticipate volatility in the market place aplenty.
2). Bank of England (BOE), Monetary Policy Committee (MPC) minutes of the last voting will be released. The last report was concluded that interest rate remain unchanged. With the state of the UK economy we maintain a view of 0, 0, 9 votes. That is, no vote for rate hike or cut but all in favor of keeping present rate.
3). Technical indicators. The last two weeks have seen a rise and fall of a 1300 pips range. We see this being whittled even though the Asian session traded 1.6459 on London open.
However, a retrospective look from previous weeks to date give us reasons to be suspicious of any long position today.
While we play the waiting game, we expect the pound sterling to tone-down its recent bullish mood. As you know none of these are cast on stone but, if this move breaks down as we anticipate it could be huge.
Do you have a view on this matter? I invite you to leave us your comments. It doesn’t matter if you disagree.
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Tags: Forex Trading, 3 Reasons For Trading The Pounds
