FXWW News/GBP crosses/Trade Ideas

GBP: Giving bulls like me quite a fright

Maybe my GBP bullishness of the moment is totally misguided or perhaps I’ve gotten the timing wrong, but the price action yesterday in cable was very bearish and rallies were almost non-existent until Europe closed. EUR/GBP is back up towards the upper end of its short-term ranges and cable has closed below previous technical support at 1.5270/90.

I was up a few times overnight nursing this latest sick child but remain long with a stop at 1.5100.

  1. Good morning, Sean! I entered the trade average near 1.5280. How about double add the long position near 1.5183 and triple add the long position near 1.5150 (if reached)? I am looking for long cable trade for several weeks, hehe…..Thank you!

  2. Morning Sean! Fundamentally US economy seems to be doing better than UK, EU at the moment, and there’s all the talk about coming of “strong dollar era”. Could you let me know why you’re bearish USD in your great mind?

  3. Hi Yue, looks to me like 15150/15400 volatile range? Be patient, if 15150 suppt looks loike holding then buy with fairly tight stop 40/50 pips imho. Always keep overall s/l amount in mind.
    How’d you go with GBP/NZD, yu were short at 200 right?

  4. Hi Jasper, there are trading times to be long USD when it gets oversold but from l/t fundamentals the USD is a basket case. Their economy can only grow by them creating huge amounts of debt, and they already have debt levels that they can never repay. The world has its head in the sand again, and understandably so as the alternative is very dire.

  5. Ok, thank you, Sean! I’ll be careful in cable trade and keep holding small amount for medium term bullish trend. Yeah, I still hold GBPNZD at 2.0 and add 1/2 short position at 2.0020, this pair seems very interesting……Thanks a lot for your help! Otherwise I’ll close only for 100-150 pips, haha……how about change to long position near 1.9250?

  6. Correct Jasper, plus I think EZ bank rules could see big move of cash out of EZ banking system and into GB? These are all macro factors but I also like the technical set-up in cable and levels on 152 handle seem ‘cheap’ to me, that’s why I try to build long position now

  7. Good evening Sean,

    Yesterday, it was pretty bearish on the cable and we are back in the range [.8475-.8600] on EUR/GBP. I guess and I hope, we could have this range for the next session on the cable [1.5200/1.5400] ? Otherwise, I will give up it under 1.5180, as you said : keep overall S/L amount in mind. Elsewhere, we have broken the resistance at 98.80 on USD/JPY (previous breakdown level of the uptrend). It could be interesting to play EUR/JPY for instance : buy at 128.45 S/L under 128.00 ??

    http://img200.imageshack.us/img200/4770/s4z0.jpg

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