Grasshopper

I have seen you doing the same thing on the EU thread and may i suggest you find a method or system that works for YOU. Learn it trade it and make your own decisions because until you do you will never be a successful trader but only a follower of others.

Hi Grasshopper, why don't you throw your opinions into the forum? forget about not being as experienced as some, the more views and opinions on here increase the chances for a more informative read. you might get some good feedback in relation to your trading style.

there is nothing wrong with you posting as you currently do, but i for one am always interested in hearing views of others.

took a meagre 25 pip scalp from the trip down. could've/shoud've/would've (typical) been more but i was afraid of getting stung on a sharp retracement. out of trades at moment.

Cheers
Paul

I agree, it's great hearing everyone's views on here. I wish I had posted something along the lines of what I mentioned in my analyst pick this morning (DailyFX Roundtable), but unfortunately I didn't, nor did I trade it. I doubt this bearish leg is over yet, and while we could see the pair recover slightly overnight, I think it'll target at least the July lows/61.8% fib of 1.9408-2.0152 at 1.9695.

I have a question.Are there specific time frames in which you guys trade or do you trade at random according to readings?Second question.Do you think that the GBP will be bearish for the rest of the week.

Take it easy on Grashopper.I am sure all had to start somewhere.At least he has the b..ls to ask.I am sure that I will also in the future ask a lot of questions that might sound stupid to some but might be helpfull to me and others.This is a challenging field and I enjoy it more than anything else to trade.To make a success I would have to rely on experts that has been in trading for very long.Thanks to the guys that are willing to help

I'll agree to that. I think it may retrace to 1.9860-70 overnight then fall back to 1.9700 during US session tomorrow or afterwards.

Where did all the Matrix traders go? I'm interested to hear what they have to say?

I thank you Se1paul,terri belkas,frederik,Longhorn and all other who might add comments.
1-have no doubt whenever I have some info at least I rely on to trade I will hesitate to share as normally I will not pay from my money for others to win.
2- I believe that posting unstable and unprofessional post here is a big responsibility as there are many viewers and newbies might get this and go with it and might end them loosing real money which I believe this will not make me or you feel happy.
3- when I see few of real pro traders with charts and trends I find my place behind the desk learning I can't and will not pretend that I am the teacher. after all this a real world money trading not gambling or personal prediction based on mood.
guys take it easy ... last week many fights happened with many users on this forum the result came we lost smart people,(no need to mention names). we don't know each other we are all coming from different world, and this is a stressful business I guess we are in contact with each other more than we are with our families.
that's all I have to say and I hope I will find among viewers some with a happy mood which will relief us from time to another while we are behind screen.
good luck in your tradings we all need it.

Kate:

Thanking you

I am newbie in Matrix, and I haven't fully mapped the higher time frame yet
But it seems that the turning date was July 29 (not July 30 as I said before), and the high price was only 1.997.

From now on, the strategy is only to sell rallies until 1.94.

Licking My Wounds

Today I was fairly confident that the cable was going to continue its upward trajectory and with a swing here and there we should have gotten closer to the 2.0000 level. Unfortunately for my still standing open bullish position at 2.0009 (Ouch) the cable plunged and lost it boost. Instead of the pair moving upward it zipped back to earth at an amazing speed losing just about 200 pips.

As we know that average movement of the GBP-USD is about 150 pips on a good day. Today was above average and there had to be a reason for the amazing sell off. It appears that the sell off was as a consequence of the bidding taking place across in Europe as many 63 financial institutions were aggressively bidding to get greenbacks to replenish their reserves.

Well it all happen that 63 financial institutions bid for more than the quadruple the amount of dollar on offer. The 63 financial institutions bid over $101 billion for the $25 billion auction which without a doubt, caused the dollar to rally and the cable to plummet.

For more information regarding the bidding auction please click here:

Real Time Economics : The Buck Stops Where?

Perhaps in the future we should consider days the dollar auction is taking place as it may cause the dollar to either rally or plummet.

However, we must realize that the reason that so many institutions are aggressively bidding to stash dollar in their vaults, is because they see the financial markets getting worse and not better. They are hoarding additional powder in the form of dollars which they see as a must have to be able to survive the more severe and more shoes drop financial crisis in the American continent. Unfortunately this hoarding of USD should not translate to long term strengthening of the dollar, but to the contrary it should weaken the buck therefore the bullish sentiment should return in surpass the 2.100 levels.

Happy trading

Yes, that may have made some difference, with the demand for dollars reaching a new high at the auction.

However, I am not sure how great this effect would be, as this rush for dollars is no new thing. There has been a great demand for dollars from European banks since the crisis started in August, as most of their troublesome assets are dollar denominated, but these said institutions lack the dollar liabilities compared to their US peers, due to not having a natural inflow of dollar deposits. To counter this, many European banks have previously borrowed in euros, sterling and swissie, via their cental bank liquidity schemes, and swapped into dollars, thereby fuelling similar levels of demand for the greenback.

I would put much of yesterday's decline down to mildly dollar positive economic news, crude oil falling below its 100-day moving average, a rally in equities and yet another bout of poor economic data from the UK.

I am looking for opportunities to short the pair, but find myself reluctant to take on a position at these levels, with the NFP data release on Friday - an event which could well see a spike in the pair. I will watch price action today for short-term opportunities, where it will be interesting to see if the pair can clear the 1.9845 area.

Cable continues to find support at the 50.0% Fibo level of the 1.9410-2.0152 rally. Until I see a clear break of this level I am hesitant to go short the par.However, once we see the support line broken the sterling could fall all the way back to the base of the rally at 1.9410.

Attached Images

 

Keep watching this trend channel for short opportunity.
Enter when it's near the top of the channel.

1.9845 is not too safe to enter short position IMO, as it's in the middle of the channel.

Hi Cmellon,

I did not say it was safe to enter at this level and nor am I looking to short at 1.9845, but am merely interested to see if the price can clear this level, as it has been a key support/resistance in the past few months. I think a quick scalping opportunity for a short may present itself close to this level with a very tight s/l.

However, I am looking for a much higher level to assume a short. As I said in my post, I am not comfortable shorting at this level.

Grasshopper860,

I am posting the same chart, but with additional comment.

As you can see, price is bouncing back and forth, all inside this trend line. I hope you can see it?

So next time when you want to short, short when price moves towards the upper trend line. When you want to buy, buy when price moves towards the lower trend line, it's that simple.

But since I am bearish with this pair, I will only short when it's near the upper trend line. You can put Stop Loss very tight, like 20-30 pips above / below the trend line support. So in this case, I will short when price reaches approximately 1.9935 (this would be at the upper trend line support). I will put Stop Loss very tight, such as 1.9955.

I hope this is of some help.