Tag Archives: GBP/USD

Chart of the Day: GBP/USD

Happy Friday all! And what an interesting week it has been, hasn’t it?

I must admit that the erratic movements in the markets have had me a little on edge. Which way to go? Am I making the right decisions? It’s been a mixed bag of results to tell you the truth. In a prolonged rolling market, leaving trades unmonitored is not the wisest decision. You have to be literally implanted in your chair, eyes glued to the computer screen to avoid getting yourself into a precarious situation.

Anyway, I will keep this post as short and pain-free as possible! 😉

Let’s take a look at the chart for GBP/USD:

gbpusd 6.26.09

Over the course of the past day,  around 7am PST yesterday til now, the pair has moved nearly 300 pips to the upside.  It has made the most significant moves of practically all the other pairs but if you look at the entire chart, it is basically rendered trendless/rolling. We have been trendless since the beginning of June and will have to wait for a significant breakout or breakdown to be back on track again. In my opinion, a break to the downside may be the most plausible. The pair has already hit its highest point three times during this month, the highest it has been since Oct. 30th, 2008….8 months ago! So, like I said, a breakdown most likely will be coming and we should keep an eye out for that.

We are 3 trading days away from the end of the month and no real critical data will be out until mid-next week.

USD: ISM Manufacturing PMI

USD: Unemployment Rate

USD: Pending Home Sales

USD: Consumer Confidence

EUR: Interest Rate Decision

JPY: Tankan Manufacturing Index

CAD: GDP

AUD: Retail Sales

AUD: Trade Balance

GBP: Manufacturing PMI

Just a few important data releases to be aware of.

Hope everyone enjoys the weekend! Until next week…! 😀

Forexgal_1.

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Observations: Rolling Market Action

Hey friends!

Hope everyone’s having a splendid week so far. It seems to be a bit dragging for me, especially on the trading end. Not so many AMAZING trades going on out there. Trust me when I tell you that there are trades out there but hardly any that you would expect to hold overnight unattended. I lost a bit of money a couple weeks ago due that error, which made me upset and angry with myself. After a bit of mourning(those of you who have experienced the sheer agony of a big loss know what I’m talking about)I had to decide that I could not let this market eat me alive. No way, no how. So, somehow I had to bring myself back from the brink of near madness and give it another go. It’s all a learning experience, as it should be. We all make mistakes sometimes, and have got to roll with the punches instead of completely falling apart. Am I right? 🙂

So, as previously mentioned, the market has been in rolling stages for the past few days. Here is a typical chart for you to observe:

gbpusd 6.17.09

Most times when we are in a rolling trend, most trades do not last more than roughly 3-6 hours maximum. It is up to us to be aware of what is going on and always be prepared for a sudden change in direction.

Also, let’s not forget that we have to pay special attention to any economic data that may come out whose effect could swing the market in the opposite direction. Tomorrow economic calendar includes:

CHF: Libor Rate 12:30am PST

GBP: Retail Sales 1:30am PST

CAD: Core CPI 4:00am PST

USD: Unemployment Claims 5:30am PST

That’s about it for today, guys. If you want to know what I may be trading tonight, check my twitter page Have a wonderful day, everyone! 😀

Forexgal_1.

Commentary: Today’s Market

Hi friends! I’ve finally got my computer up and running again. Yay!

So, I just wanted to give you guys a quick rundown on what’s been happening in the market today. After a week of a significant amount of movement by most of the currency pairs, the market has consolidated the past 2 days. Let us take the example of GBP/USD:

gbpusd-4709

If you look at the chart, you may think see that there was movement and the opportunity to make some money if you traded this, but overall the pattern is erratic. Four hours down, two hours up then some consolidation, 2 hours down again. Making trades such as these are very risky and if we decide to get into one, we must remain vigilant due to the fact that it may change direction at any given moment. There are always opportunities to make money in FX but we must know when to take or pass on a trade. When the market is in consolidation mode and there are no solid short term trends in place, it is so easy for your investment to disappear before your very eyes if you are not careful. Remember that we  must see what is on the charts and not what we want to see and always keep our emotions in check while trading.

There hasn’t been any really big news out this week so far to drive the markets but as I always say, we must keep on top of our economic data. Coming up tomorrow, we need to look out for these important newcasts:

CAD: Housing starts

USD: FOMC Meeting Minutes

AUD: Unemployment Rate

We never know how much impact these data may have on the market. At times it can be quite dramatic, at other times, it hardly leaves an impact. Always be prepared for the unexpected.

Forexgal_1.

Chart of the Day: GBP/USD

Hello friends! I trust everyone had a relaxing weekend. 😀

I want to share with you all my pick for Chart of the Day, which happens to be GBP/USD. Take a look at the chart below:

gbpusd-3909

Is that the most beautiful move to the downside? This pair dropped over 300 pips, from roughly 1.4116 down to 1.3780 in a matter of 7 hours! Amazing stuff. 😀 I don’t expect another major move too soon, after all it has made a considerable one in a very short timespan.

So, here’s to a profitable rest of the week! I know it would make us all very happy!  😉 Happy Monday to you all…

Forexgal_1.

Battle of the Pairs: USD/CAD vs. GBP/USD

usdcad22709

VS.

gbpusd-22709

Which chart looks better to you? What brought you to that conclusion?

Today, I’m taking a new approach. I want to be a little more interactive with you all. One reason being I want to hear more from those who having been reading my blog and second of all, I feel that it’s good to share ideas…you may begin seeing things in a way you’ve never thought of before. So, let’s mix it up a little.  Leave a comment with your answers, I will respond. Don’t be apprehensive with sharing your thoughts. I’ll give you a hint:

There are no wrong answers. 🙂

Let’s start the discussion!

Forexgal_1.

Commentary: Market Sentiment, USD/JPY update, Economic Data

I’m condensing everything into one post today so be prepared for lots of different info coming at you all at once. 😀

So, today’s market has been quiet and for the most part, uneventful…to say the least.  It hasn’t been easy pinpointing exactly where things may be headed for the rest of the week.

USD/JPY, which has been on an upward move since early Monday has seemed to have lost some of its steam. Looking back to February 5th when the pair began its ascent, I see that it rose approximately 8.4 points from roughly 89.30 to 97.70( 12:20pm PST, 2/25/09), which is equivalent to just about 840 pips. It’s pulled off 1/2 of that progress in the past 2 1/2 days so it is no wonder that the pair is back to a slow-moving pace. Take a glance at the chart below:

usdjpy225091

As for the best move of the day, it would go to GBP/USD which dropped a whopping 350 pips overnight from 12am – 10/11am PST. The pair had ‘bounced up’ for 3 days(Thursday 2/19, Friday 2/20, and Sunday 2/22), went sideways on Monday and Tuesday, and today completely retraced and sold off the move it made on the previously mentioned ‘bounce’. See retracement below(notice my labeling/indications of where the bounce happened and when the tide changed to the downside today):

gbpusd-22509

Now moving on to economic data from today and the previous days of the week(in descending order) :

2/25/09: U.S. existing home sales have fallen unexpectedly in January by 5.3 pct to 4.49 million. This is the lowest amount of purchases made since 1997. The median price for homes is now at $170,000, down about 15% since last year. It was projected that sales would be up from the 4.74 million existing home sales of December to 4.79 million in January but instead sales declined dramatically(as stated above).

The U.K. economy has shrunk to its lowest point during last year’s 4th quarter since 1980. GDP declined 1.5 pct from the 3rd quarter due to company and consumer spending slowing down.

2/24/09: U.S. consumer confidence dropped to lowest on record in February as unemployment and foreclosures reach new highs. It expected that spending with decline even further in the coming months unless President Obama’s stimulus plan creates new jobs which will then pump more money into the economy.

2/23/09: Canada’s retail sales plummetted twice as much as expected in December, down 5.4 pct to $33 billion as consumers decreased spending on clothing, cars and building supplies.

U.K.’s retail sales drop at the slower pace in February but retailers are letting go of employees at an increased rate.

Forexgal_1.

Term of the Day: Pip

What is a pip? What is its importance in Forex?

For those who may have been reading this blog yet don’t quite understand what it is, allow me to shed some light on its meaning. I realized that in just about all my posts, I write about how many pips a currency pair may have gained or lost but haven’t fully explained what a pip represents. Here is my interpretation of what a pip is:

A pip, acronym for ‘percentage in point’, is the smallest increment by which the price of an exchange rate may change. Pips are recognized as the last digit(number) after the decimal point. For example:

GBP/USD is at 1.4455 and moves to 1.4456 . This pair has moved 1 pip.

In this currency pair, like many others, a pip is calculated as 0.0001 .

In the case of USD/JPY, 1 pip is calculated as .01 as their exchange rates are shown with only two decimals places. Here’s an example:

USD/JPY is trading at 96.72 and moves to 96.82 . It has moved a total of 10 pips.

Do you see it? It is simple subtraction: 96.82 – 96.72 = 10 pips!

Questions? Leave a comment. 🙂

Forexgal_1.