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].
Lower than normal volatility and a general lack of direction in currency markets meant only snack-size profits during today’s New York session. A routine go-long-at-the-hourly-21 trade yielded a 40 pip profit before the London close.
PM Exchange - FX Bootcamp’s McDonell discusses EUR and stocks
04/20/09 06:47 PM - ForexTV - USD beats up on other majors as equities plummet bringing back the markets’ inverse correlation.EUR continues to fall after ECB suggests rate cuts. Sterling plunges.
Any doubts about the direction of today’s Forex market were settled during today’s New York session. After reaching pivot profit zones earlier in the day, the US dollar and Japanese yen pairs set a new course as risk aversion enveloped the market. The dollar’s recovery kick-started a range breakout trade on the GBP/USD, which yielded a healthy profit of 170 pips prior to the London close.
Today’s London session started off with a bang! We found ourselves in a very definable triangle price trap pre-London which was breaking just as the London boys sat down to play along with the rest of us. The top of the day had started with a bounce off the daily central pivot point/hourly 21ema, and now it was quite obvious money was starting to change hands at the open. Once the lower low/break had occurred we verified the British Pound’s intentions using the EUR/GBP pair which was correlating perfectly with Pound weakness at that time, as illustrated in the video. Then using a simple Fibonacci retracement study on a short term chart we were able to identify our best area of reward vs. risk for entry, then off to the races we were. Then around 20 minutes after the open we identified one additional pullback entry opportunity for those who missed the initial entry. In this video we discuss in great detail how we setup this trade plan, which could have been taken on any pound pairing (GBP/USD, GBP/JPY, GBP/CHF, EUR/GBP), projected our targets, and finally took profit at the daily S2 reversal pivot point. What a wonderful session to be short the British Pound Sterling.
FXBootcamp London Currency Coach-
Christian Stephens
London today opened with the British Pound/USD pairing stuck in a little triangle, price trap. Just as London opened it seemed to breach the upper resistance of this trap , but quickly proved to be a fakeout when we awaited a pullback. In this video I show how, in great detail, how we were able to stay out of the long, and build a solid tradeplan on the break either way of the trap. Sure enough we got a break on the next test of the bottom, awaited a Fibonacci pullback to the now broken trendline, and it was pretty much straight to our projected target in no time after that. Having solid patience and discipline in this setup led us to a very high quality pullback entry risking 22 pips or so for an 80 pip reward, London could start off worse eh? Good stuff.
FXBootcamp London Currency Coach-
Christian Stephens
We opened the London session today with a recurring theme of a very weak British Pound. By the time we had opened London we were already 200 pips into a nice GBP/USD short from pre-London. In this video we show how, over a span of just over an hour, were able to put together a trade plan for a new short on a Fibonacci 50% retracement zone that overlapped with multiple layers of other resistance. The plan was easy, the waiting for price to get there was where patience was required. Ultimately we found ourselves in a high quality short with a 40 pip or so risk and at least 120 pips before any support could be found, for a decent 3-1 reward vs. risk setup off a pullback entry. That’ll work!
FXBootcamp London Currency Coach-
Christian Stephens
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