Happy Monday to All !

As we head closer to Christmas and think of other aspects in our lives, it is appropriate to take things a bit slower and have time for a little reflection.

Our Markets, as we have mentioned before, are beginning to “thin” in volume and increase and decrease in volatility with plenty of intraday noise.

A Currency pair that historically matches this “leisurely” pace  is the EUR/GBP…the Euro Pound.

With such deep similarities in all sectors of the economy, the EuroZone and the U.K. enjoyed a constant “Push and Pull” Price action.

Until almost two years ago…

I have always enjoyed working with this pair, and it is where I first began learning about Chaos Theory outside of my formal music composition studies…Beethoven would be proud!

Early on, I was able to really accelerate my learning curve with proper range and pure support-and-resistance trading strategies using the euro pound as my vehicle.

The Pair allows for consistent momentum in most cases, and can be a fine “learning curve” pair in this way.

I would often joke and sarcastically comment on the pair with my dear friend and Primary Mentor, Ed Ponsi, about this daily.

We finally described the pair as the “Pair that was fascinated by watching Paint Dry”.

It was so slow and literally immobile…that the act of watching paint dry was faster than the euro pound Itself!

And then…BOOM!…All Hell Broke Loose!

My playfulness with the Pair was over…  

Let’s have a look at the Monthly and and see where this epiphany took place!

(click once for capture)

 A couple of views with the Hourly chart reveal just how “proportionate” and “even” this pair is…there is equality in exchange rate similar to the “horizontal” Fractal areas we spoke of last week on the Pacific Dollar pairs.

 Now…if your view is Bullish, you have quite a trend to draw probabilities upon.

As we know with Foreign Exchange as a whole…once we do trend…we usually see these trends sustain themselves nicely, especially with the multi-year Breakout we have here.

Look to the Key S/R areas to “shift and roll over” and pullbacks will lead you on your way.

If you are bearish…you have literally equal probabilities here…at least from an intraday perspective. These same ranges can be used to “Fade” and short this pair in more of a classical Support-and-Resistance manner.

Of course…giving almost double the Pip Value certainly does not hurt either!

A Caveat from the three CVJ Fan Club guys, though…

“As always, define your risk!…

We are using any potential gains to buy that dinner for Ben Bernanke…

If our trade stops out…it is fine.

Paulson can pick up the check…he’s got a few bucks to spend, doesn’t he!… hee hee…”  

Tomorrow, we’ll do a brief check of the battle and see how we have progressed…as we await the final FOMC Interest Rate decision in the States of this year, and of the current Presidential Administration.