Thread: Discuss the GBP/USD with a DailyFX Analyst

London session review and outlook May 2 - 2012
Review of markets covered in today's edition of Bulls vs. Bears: EUR/USD, GBP/USD, AUD/USD, FTSE100, S&P500, Gold, Brent Crude and WTI.




Regards

Alejandro Zambrano
Currency Strategist | DailyFX Forum (London)
azambrano@fxcm.com

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Originally Posted by MOZI32

Good luck , nice ride up and down ?

Great to the the big picture Its easy to get stuck in th short term charts- - Think your setup looks reasonable.

Originally Posted by Gregory McLeod

GBP/USD Hit Short-Term Target of 1.6200

Hello Traders,

Look for another push higher into the 1.6285 before deeper correction lower.

SSI supports rise in GBP/USD:

GBPUSD - The ratio of long to short positions in the GBPUSD stands at -3.71 as nearly 79% of traders are short. Yesterday, the ratio was at -4.32 as 81% of open positions were short. In detail, long positions are 5.2% higher than yesterday and 41.5% stronger since last week. Short positions are 9.5% lower than yesterday and 13.2% weaker since last week. Open interest is 6.8% weaker than yesterday and 15.1% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains

Agree with you Pip Meister... here are my views on gu based on 2 hrs..
Expecting a move to 6200-05 and is a decent resis but since the price seems to be within a descending wedge expecting a break higher for a move to 6266-72..

6135-40 is excellent supp on dips..

GL...

GBP/USD short term outlook

GBP/USD is holding up just above 1.6150 which is support for the long term trend. In the very short run price is trading lower since Monday as we can see that price is creating lower and lower highs - this is threatening the 1.6150 low. A breakout under 1.6150 opens up for a decline to 1.6150.

To get a higher probability of success for a long position we need to see Monday’s bearish trend ending - by price taking out the 1.6215 high. A short term trader can remain bearish as long as we trade under 1.6215.

1 hr time frame

GBPUSD - The ratio of long to short positions in the GBPUSD stands at -3.45 as nearly 78% of traders are short.

The pair fell over 135 pips. Are the banks loosing money or not ??
Are they going to allow for the pair to fall any further ?

Originally Posted by MOZI32

Good luck , nice ride up and down ?

Hi MOZI32,

Same view here - make it or breake it from here (1.615). We will get either a wedge overshot and tumble, or one more rally with a daily RSI div brewing. - puts are getting more expensive every day - bearish bias, but doesn`t exclude one more spike.

Patryk

Originally Posted by Yagami

GBPUSD - The ratio of long to short positions in the GBPUSD stands at -3.45 as nearly 78% of traders are short.

The pair fell over 135 pips. Are the banks loosing money or not ??
Are they going to allow for the pair to fall any further ?

Hello Yagami,

Looks like the 1.6160 level is being defended for a push higher.

GBP/USD Inverted Head and Shoulders and Double Bottom Points to Gains

Charts from today's edition of the webinar Bulls vs. Bears @ The Trading Room 10:30 GMT (11:30 UK time or 06:30 EST Mon - Fri)

Recorded version
Bulls vs Bears - The spread Betting Morning Update May 3 - 2012 | DailyFX: Bulls vs Bears on Blip

Cable May Wait for ECB Press Conference Before Making its Next Move

Hey Traders! Let's get this party started with a Lightning Round!

Just post your open positions with your stops and limits in sentence or two.

Even if you are "Flat" or "no position " or waiting for a specific price level to be triggered.

Don't worry about a chart or a detailed explanation!

Don't be Shy!

I'll start: Short CAD/JPY@ 81.62 stop 81.75 Limit 81.41

below 1.6186 (no.7 top) -timberrrr! - 1.616 (no.6 9.30 London time) broken - no.8 bottom tomorrow 9.30 L. time

edit: nope - stopped out - back to the drawing bord - either a late no.6 or inverted no.8 bottom in place

Patryk

GBP/USD is struggling to figure out if it wants to trade higher or lower. That we failed to trade under 1.6160 gives some bullish bias - but this is more evident in EUR/USD and not GBP/USD. We need a breakout above 1.6210 for the trend to turn bullish.

Originally Posted by Gnarly

I use it as volume indicator. When I say volume I mean market activity as it is impossible to know contract sizes.

I also use it to determine the end of a trend (sudden drop in volume) and a reversal (divergence)

This is not the only indicator on my chart, I also use the macd and slow stochastic

Thanks Gnarly for your great explanation on using tick volume!

Anyone else use tick volume in a similar way?

Originally Posted by Gregory McLeod

Cable May Wait for ECB Press Conference Before Making its Next Move

GBP/USD = BAM! 3 tests of S1 Daily Pivot Leads to Breakout