As the London session began today we were showing signs of the EUR/GBP challenging it’s previously broken resistance as role reversal support. Sure enough we did indeed break it halfway into the London morning. This also popped the GBP/USD to a higher high of it’s recent range, along with GBP/JPY and the GBP/CHF pairs, everything GBP basically. While all of the aforementioned pairs offered decent trade plan/set-ups this video I focus entirely on how we built the plan on the EUR/GBP, waited for our entry criteria to be met, then pounced on it once this criteria was achieved. Very successful day buying the British Pound, but one HAD to have patience early on in the day, as we were in a range for the first couple hours of London today.
FXBootcamp London Currency Coach-
Christian Stephens
A firm U.S. dollar and Japanese yen defined price action throughout today’s Asian and London sessions. After the open of the New York session, that theme mostly fizzled. However, there were opportunities to profit from moves in the currency market before the London close. For example, the GBP/USD currency pair dropped some 50 pips from multiple likely sources of resistance, including a major psychological level.
After the bottom fell out from under the British Pound yesterday, it allowed us to hit long term resistance on the EUR/GBP Weekly/Daily charts. and very well extended past the Daily Bollinger Band/5 ema. This left us in a situation where we were looking to build trade plans on any clue of a pullback type trade. In this video I break down how we built and executed trade plans on both the EUR/GBP and GBP/CHF pairs simultaneously using short term time frame charts to wiggle us into what looked to be the beginning of an hourly/4 hour lower high on the EUR/GBP and higher low on GBP/CHF.
These pairs proved to get it handled by the time London lunch rolled around, not too shabby a counter run tonight.
FXBootcamp London Currency Coach-
Christian Stephens
The British Pound has been week for well over a month now and really there are no signs yet as to why it might firm up. As the marked gapped the GBP/USD this weekend, Asia continued to short the Cable on it’s pullback to around 1.5200. We were approaching the 1.5180 area which was an hourly 21 ema, 4 hour 5 ema, 50% Fibonacci retracement, falling 15m trend line as the 4:30am est news was being released. I discussed with the room how if the news took us to this area that a short plan is viable, and to not be surprised if we saw a drop from those levels with a relatively low risk. This is indeed how the move played out, but if you did not take the initial entry off of the hourly 21 using short term price action with a 1-3 minute chart, I am afraid the pair did not offer an easy to spot Fibonacci pullback afterwards to enter more conservatively.
Cable just marched onward to the 1.50 region which proved a hard level to not find reasons to take profit on since we did have other support reasoning in that neighborhood. After which most of us were planning a re-short in the 1.5050 zone give or take Fib wise. Well THAT sure did not happen, and if you managed to stick around you were rewarded with a 215 or so additional pip drop from these levels in minutes, it smelled of capitulation. I sadly must admit I bailed near the 1.50 zone only to watch and squirm as it jumped off the high dive.
While the long term charts predicted this move, and may yet prove to not even be the lows, I must admit a high level of difficulty staying in this short the entire way IF you were watching the trade, the Cable was best short and go to sleep mentality off that hourly 21. Profitable but very challenging session at the same time.
FXBootcamp London Currency Coach-
Christian Stephens
Wedge play was the key to scoring pips on the GBP/USD currency pair during today’s New York session. From resistance to support in a descending expanding wedge, cable dropped roughly 100 pips during the two hours prior to today’s London close.
Capital preservation was a valid position today, as the U.S. dollar consolidated after losing ground against most major currencies during the Asian and London sessions. A 55-pip scalp trade on the GBP/USD currency pair was arguably the best setup today’s New York session had to offer.
The British pound exhibited a firmer tone following the announcement by the Bank of England that it would expand its quantitative easing program by £25B, less than the market consensus of a £50B increase. That fundamental news, in combination with prior visual support, moving averages on multiple time frames, a trendline, and a Fibonacci retracement level, contributed to a trade plan for buying the GBP/USD currency pair soon after the U.S. equity market open. The long trade on cable yielded up to 70 pips [depending on exit strategy].
Yesterday we enjoyed quite a Piptopia on the British Pound breakout of a Daily trendline to the upside. Sure enough, today was our opportunity in London to short it back down to the trendline retest. Pre-London gave us our first lower high to work with on the GBP/USD, and the 2hr EUR/GBP started developing a higher low to give us confidence in the move. The rest of the London session was spent reloading shorts at every Fibonacci pullback possible and turning a 100 or so pip move into a 250 pip play due to exponential reloads, I just love days like this, purely technical. Bad Retail Sales for Britain helped finish the job and there we were, right on our target zone to take profit, could not script it better really.
FXBootcamp London Currency Coach-
Christian Stephens
Hi everyone. This is not my typical intraday market look, in this video I respond to an email forwarded to me and take a look at some longer term analysis for the Pound. I take a detailed look at some key Euro Pound price action and try to predict the future for Cable over the next 90 days. In addition to this longer term analysis I also build a few basic intraday plans for Cable and Euro Yen. Enjoy and good luck today!! David Pegler
Bank of England governor Mervyn King told a local U.K. newspaper that the country’s banking sector is “not in good shape,” and that he saw the decline in the British pound as “helpful” to re-balancing of the country’s economy. When the market got word of King’s comments, sterling got smoked. Multiple short trade setups on the GBP/USD currency pair materialized during the first hour of today’s New York session. Those who shorted the cable realized a profit of up to 170 pips [depending on entry and exit strategy].
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