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Husar



Last Updated: 11/18/2009

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Gender: Male
Status: Single
Age: 42
Sign: Scorpio

Country: US
Signup Date: 8/6/2006
Tuesday, October 27, 2009 

Category: Jobs, Work, Careers
Very interesting question I received in comments to yesterday’s post, New China scare, and it had nothing to do with China or USD. What was I up to in relation to EUR-GBP? Evidently I’m not the only person preoccupied with Euro-Pound recent moves, at least couple of readers keep me company. Pound is causing some controversy. No, not the GBP, but rather the way it reacted to recent recession news. Some question validity of GDP data, some claim it is inaccurate. Perhaps it shouldn’t have been published at all , given the fact it is incomplete and subject to revision? Today retail sales numbers were announced and they are the highest in 2 years. What’s going on? Analysts from major financial institutions are broadly divided on future course of GBP. Some call for parity with Euro, while others see 0.8500 level. At the moment market is very conveniently right in the middle of this wide range and stalling, as if waiting for new data to push it either way.
So, what is the next move? Well, as far as I’m concerned it depends almost entirely on time frame of interest. Most traders are partial to charts that fit their strategy and time constrains. Those who sit in front of terminal all day long probably don’t use weekly charts for entry points. For my latest trade I used 4H chart, with general direction dictated by daily graph. Price moved largely as expected, falling to 0.9100 level, but failed move any more yesterday. With my objective of 0.9080-0.9100, I got out at 0.9108 for 101 pips gain, good score for this cross in one day. Since I closed it, it wouldn’t be prudent of me to use 4H chart for next trade. At this point risks would be much bigger than possible returns, given proximity of major support at 0.8990 or so.
And the next move is...
5:26 PM
 
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