I spent some time during the weekend going over the charts of Pound and all its crosses. Some of it was expressed in the last post, but main objective was to sort out my confusion regarding the beast and the dilemma I’m facing. My latest trades in GBP-JPY were covered in Emotions complicate trading. Most immediate outlook has indeed become confusing, for me that is. I’m sure there are people out there who always know what will happen next and have an unwavering opinion. My hat goes off to those traders. It wouldn’t have bothered me one bit, after all it is not the first time I’m confused, had it not been for a fact that I have an open trade there.
I caught most the latest up move, on the breakout above 151.65. Expectations were for the price reach 162-63 area, but it looks like major resistance was encountered at just above 160.00. I’m still confident we will see higher highs, but not certain about the length and depth of the drawdown. Price have fallen 500 pips and rebounded some. Intermediate term chart suggests possible reversal, which could take it as low as original entry under 152. However, on Thursday I entered another long trade at 155.68. This is why the brain storming.
Currently this trade shows a decent profit and it would be a shame to see it turn into a loss. Immediate plan is to take profit at 159.00, with another buy order above latest high. If the up trend continues. Good thing it is weekend right now, market could offer some clues at the open. I’m looking for gaps, which should be indicative of next move and take it from there.
EUR-CHF is another pair on interest at the moment.
It has been long time since I gave this cross a serious look. Ranges have contracted over last few months, to more historically average levels and I have not seen a lot of opportunities. This maybe changing, maybe not, but current behaviour looks promising. I have a buy order at 1.5242, looking for 1.5360-70 level. Intermediate term chart (4H) is used, so I don’t expect quick conclusion. No problem, as long as it goes my way.
Mike K.
You are very perisistant with the beast, Mike. I’m sitting this one out, no conviction. Good luck.
The eurchf up move, should come from the weakness of Franc or strength of Euro, maybe combination of both? What is your take?
Damian, combination of both, but skewed to weaknes to CHF. However, if it happens, what difference does it make?
I’m not surprised that you are concerned with GBP/JPY. Frankly, I couldn’t understand the ease with which you have been trading it until now. This is one of the most difficult pairs to trade, with very few people doing it right long term. I find current situation difficult to sort out.
You are right about the beast being difficult to trade. Most people, especially beginners, should stay away from it.
I agree with it. This pair doesn’t chart very well, patterns are unreliable, moves like crazy. Can’t imagine trading only gbp-jpy. Think that usd-chf and eur-usd are much easier. BTW, how did you do with your trade?
See next post.