EUR/JPY: Short @ 128.77

I have gone short on the EUR/JPY pair at 128.77 I have moved my stop to a + 100 pips - Given the recent rise on the EUR / JPY that I caught some nice pips on I was waiting for two things to happen

1: Break above resistance and move higher
2: Bounce off of resistance and head lower

Of Course Right!

Well I'm feeling short on this pair given the recent short development on the EUR/CAD

GBP/CHF: Short @ 1.5492 - Is up 250 pips

My previous Long on the GBP/CHF Pair was again taken out for a 200 pip loss - Shortly after getting taken out I went short - Why fight the trend? I never do. Sometimes I'm against the norm and it can be rocky and sometimes I lose. Many times I win. I lost 2X on this long so this time I went short.

It's currently up 250+ pips and I have locked in a profit stop of 100 pips.

EUR/CAD: Short @ 1.7458 is up 300 pips

My previous short on this pair was taken out for a 200 pip profit as the price action swung up to the entry level of 1.74 - 75. Happy about betting the 200 pips I was a bit sad that it got taken out so early in the trade. I am feeling that the CAD is going to gain in strength and will climb against most other majors.

I'm short on this pair and it's currently up by 300 some pips. I have locked in a 100 pips profit stop and will again let this one ride out - I'm expecting to cathc a big correction to the 1.60 area so I may have to enter several times before that happens.

GBP/CAD: Long Entry @ 1.7833 is up 50 pips

I entered a GBP/CAD Long near my previous entry level of 1.7833 - my stop is set at -200 pips (1.7633) I'm long on this pair as I almost always am. We'll see how it rides out and if I can catch a few of those lost pips on the GBP/CHF trade I was long on. Although I lost 200 pips to the CHF trade I'm still working on many more profitable pips so that stop was not a total loss

GBP/CHF: Free Fall Ending?

Last weeks fall from the 1.70's was an incredibly good short. To bad I missed it. After such a large fall I am still long on this pair but as mentioned before the timing will be important. It is important because this pair can whip you out of stops very fast so one must be careful to not enter to early and jeopardize a stop. Timing on this pair will be best entered when the stochastics are turned around and heading back up. MACD should be crossing Zero. Although you could enter a bit early if you see the macd turning early enough. Be sure to monitor it and raise your stop when you get the chance to as this long is deffinitely a "counter trend" trade.

USD/CAD: Long @ 1.1909 is still up 300+ pips - Stop Remains +100 pips

USD/CAD long trade is still up and doing ok. It is currently (as of Friday's close) up 300+ pips and at one point was up almost 500!

I have left my stop at a profitable 100 pips @ 1.2009 Will look to see more direction on Sunday and next week, hopefully the weekend gap will not be downward!

GBP/JPY: Long @ 132.05 up 80 pips!

On Friday I took a long entry on GBP/JPY - After getting stopped out for a few measly 50 pip profit stops I decided to re-enter long again and allocate some of the profit pips to another stop loss. This pair is moving down in smaller and smaller bits which presents a risk of it breaking below this current support and falling further to a new level of lows. I'm long here at 132.05 and my stop is set at 200 pips below 130.05

Will let is ride for the weekend pause and see if it goes up

2:1 Risk Reward Ratio - How it can help you add profits to your trades

There is a rule out there that many forex investors and speculators use. It's a rule of trading that can help govern your activities in a good way. The rule is Risk Reward Ratio (I sometimes call it the Triple R)

Risk Reward Ratio is a good way to temper your trading activities and protect your starting investment. The golden number for this ratio is 2:1 - Remember that ratio!! Live it, Breath it, Eat it. That means that you will only risk 100 pips to gain at least 200 pips - This ratio is not only used in forex trader's discipline but also for stocks and commodities, bond's and t-bill etc.

This ratio should help you decide whether it is worth getting into a trade or not. Lets Take a look at how I use it for my trading and how it benefits me. Every trader will have a personalized approach to it so take this to your head and use it to help you with developing your own approach.

This explanation will not mention the use of stops

Lets look at a chart to help me explain:
Here is a 1 hour chart of EUR/CAD As you can see the price has risen nicely. 2500 pips is a nice rise especially in only a short couple months. That rise represents a potential to fall (correct) back down. In some cases a pair may indeed retrace and fall it's entire gain, that represents a risk. A risk of 2500 pips!



Now lets look at a weekly chart to get a larger range picture:

To help us get our total risk assessment for this pair I like to look at the weekly charts and I tend to use 600 - 800 bars or candles. This pattern looks very suspiciously like a "Head And Shoulders Pattern" And could help us in making trade decisions. (A head and shoulders pattern is one that is very common in the markets and usually indicates tops or bottoms) and in some cases marks a pairs range. We can see the EUR/CAD pair's range is from 1.2500 - 1.8911 - That gives us a bit of insight to where this pair may end up 100 weeks from now. If the pattern fill out and completes itself we will have a EURO worth 1.25 Canadian Dollars (or so) That gives us another 1500 pips to the top of the second shoulder, if we go long - if we go short we are risking 1500 pips to the top area of the pattern - Which has the largest gain potential 1500 upwards vs. 5000 downwards? This would represent a risk reward ratio of 3-1 (roughly) in the plus if you go with downward bets - in the negative if you go with upward bets.

If you were betting on an 8 year investment duration, your best reward would be downward direction for a 5000 pip gain, while your risk would be somewhat limited to only 1500 pips should it take off to the top of this pattern. That is a 3:1 gain and would make a bit of sense when investing. If you were going upwards you would potentially gain only 1500 but would have risked 4500 to do it.

Maintaining a ratio of at least 2:1 in your favour will help you decide if it's worth getting into a trade of not.

GBP/JPY: Long Stopped out for small 50 pip profit

My GBP/JPY long was again stopped out after moving my stop up to a profitable 50 pip position. I will now wait again. I seem to be writing that I'll wait again over and over but this is the way of the forex. There is no sympathy for those who are anxious. Wait until the price shows signs of recovery.

My one and only subscriber Jim Goose was on this pair and I hope Jim you haven't adjusted that stop any lower! The Yen is likely to lose some ground in the new year as the ECO-DATA is not good for the small island nation. What is happening and why is the Yen so strong when their data is so terrible?

Interest Rates! The Yen's interest rate is so low it's like borrowing free money! So the big dogs are borrowing yen and that make us little dogs wonder why.

The yen can't hold these levels for mush longer but the US is showing some bad data as well. If the US economy turns around there will definitely be a correction if not a full out reversal.

GBP/CHF: Another Leg Down = A better Long Entry

My GBP/CHF Trades have unwound and my small profit stops were hit taking me out of the long side. Again as I have stated before I see much less profit potential on the short side As the GBP has fallen a great way and my recover early next year. One could short it at these levels but be wary as the pound can bounce back hard and take out more pips than you though it could. Before you know it your on the short side with a loss. I will wait for the current downward momentum to revers a bit before I enter long again.

My previous stop was hit and although I don't like to lose pips I'm always thankful for using my stops as it prevented me from losing more than I did. I'm long on this pair and the timing will be important.

GBP/CAD: Long Entry Brewing

Last Week I tooke several trades on this pair. They were all Longs and although I profited on them there was little to brag about as this pair is now moving further down with a new all time low created. I am going to be patient and wait until the holidays are over before I enter long again.

My entry target is at or near the bottom of 1.7750 area. I will be taking a break for the Christmas holiday and will be back at the charts on Sunday Dec 28th 2008

AUD/USD: Long may be brewing - New range level met

The AUD climbed back up against tthe USD as a result of the markets recent flight from USD. This may be building postitions in the long side and if it continues to climb one might want to go long

AUD/JPY: Long Brewing

The Aussie has fallen against most majors and has been bouncing around these new low levels for some time. I have been watching this pair as I have been with all the Yen pairs. I'm prepared to go long on this pair and the interest spread makes for a good carry trade. I'm going to be patient though and wait to see if it pulls back to support of the 58 area. Should it reach those level I will go long.

I don't see much short potential with this pair as it's already fallen 4000 + pips from it's highs several months ago.

NZD/USD: Mid level price and not much direction

NZD/USD Pair fell a few months back and Like many I missed the short entry at the highs. (I was committed to other trades) My style of trading only allows so many trades per profits made. It helps me manage risk and loss. Lets face it who needs to manage wins? You get to bank those. Managing losses is the important point in Forex. Given the fact that your entry into a trade immediately puts you at a loss from the spread.

I have been however watching this pair with a preparedness for a trade. If it falls to the lows I'll look to go long. The action on this pair may allow for a smaller stop putting less momey at risk and the payoff to the upside may be well worth it should the USD experience troubles over the holidays.

EUR/JPY: Short Brewing? Or another long? hmmm

Last week I caught 100 pips on this pair and now I'm waiting for a short to happen. Given the pullback in EURO from a few other pairs I'm simply going to wait for an entry to reveal itself to me. The current price level is a bit high to consider a long but may present a good short if the indicators turn and head south.

GBP/JPY: Long @ 132.15 - Up 100+ pips

Well This pair is costing me some money in profit pips but thats ok. There is more than enough room for this pair to rise and I'll be there when it does (I hope) My previous long was stopped out for a small profit of 50 pips, before it plunged to a new low level opening a new entry for me at 132.15 it's already up 100 pips and I've locked in another profit stop at +50 pips. I'll let it ride until it take me out or moves higher. I'll adjust the stop to lock in more profits. This pair is volatile right now and every week it's finding new lows. If one decides to play it long they must realize that stops WILL get hit if they are to small. Give this pair room to move

GBP/CAD: Long at 1.7811 is now up 200+ pips

My previous GBP/CAD trade was taken out for a 200 pip profit and I had to find another lone to enter. My entry came when price scooped to a new low for this pair at 1.7760 once it started to revers I risked another 200 pips to enter at 1.7811. It has moved up and I have raised my stop to lock in 50 pips.

GBP/DKK: Long @ 7.8517 is up 50 pips

My long entry on this pair is up 50 pips but lacks real momentum. I'll keep it going as long as it's traveling up which I suspect wil be for the rest of this day. For now it's up and I'm long unless it turns and tumbles further. In which case my stop will protect me and I'll again look to re-enter

EUR/CAD: Short @ 1.7426 is still up and doing well + 400 pips

EUR/CAD short is still doing well and I'm up almost 400 pips (bouncing between 350 & 400) My stop is locked in for profits and I'll leave it ride to see if the EUR tumbles. The sentiment in Canada is down and our people feel it's a bad economic time, so Canadians are keeping their money and pulling back on spending.

USD/CAD: Long @ 1.1909 is still up 270 pips. Stop Raised to 1.2049

My Long USD/CAD Trade is still hanging in there and I have moved my stop to lock in some more pips. The troubles in the US are making for difficult trades in the USD since the uncertainty forces others to vacate positions. A choppy trading channel and small candles are the price action today. I'll leave this open and hope it take my stop out and moves lower making for a better long entry.

GBP/CHF: Long Stopped out for 200 Pips Profit - Looking for Re-Entry

My Long GBP/CHF trade was doing ok after weekend pause and shortly after the London session opened it began to fall and has ony recently started to bounce back. The trend is down but I missed my short (as I was long) when it took the tumble from 1.70 area to these recent lows of 1.60-63. I re-entered long as the selling momentum fizzled. I'm long at 1.6149 and my stop is 200 pips below at 1.5949

With the selling action that has been going on with the GBP I'm confident that these new low levels will present a new range to trade in for the next while. Given the heavily oversold daily and weekly charts I'm still long on this pair as I see more upside potential than downside profits.

GBP/DKK: Long at 7.8517

GBP/DKK Re-Visited!

Ok so I lost twice on this pair but I had a feeling that it would bounce and when I saw it fizzling out momentum I decided to try again and go Long. This pair has moved exceptionally well on the short side and although I never shorted it I should have! No point crying over spilled milk. Again since my last few trades have been very profitable I entered long and allocated several of those profit pips to another long trade knowing that I was full out risking them. Taking risks can pay off as you can see I'm up. For now I'll lock in a profit stop of + 50 pips and wait to see if it heads back up to previous levels. There is way more upside potential on this pair than down side now, unless it tanks again. if it does I'll go long again at a new low level. This is an all time low for the GBP against the DKK and it's uncertain how long the DKK can hold it's gains.

GBP/CAD: Long @ 1.7928 is up 300 pips! It was up 600 but I haven't closed it yet

I entered a long on this pair GBP/CAD after the free fall proceeding the BoE minutes. Again patience paid off and I scooped a good buy. The only groan i have about this trade is that while I was sleeping it spike up to a positive 700 or so pips and I missed my closing price that would have pocketed me another 700 pips. I will leave this trade open for the weekend and see if it heads back up to the 88-89 level if it does thats another 1000 pip trade! Lets see where it goes in the next coming week. My stop is just above the buy line at a + 50 pips. If I consulted my crystal ball I would have known to put in a limit order and took home another 700 pips but I didn't - More proof that I'm not a perfect trader.

EUR/USD: Short @ 1.4613 is up 800 pips!

I don't normally trade this pair but after seeing the rise to 1.47 area and knowing (suspecting the USD) would correct and get a bit stronger I risked it and went short on this pair. I was tempted to go long but I tempered my temptation with discipline and waited. That wait paid off and I jumped in risking 300 pips in stop loss for this pair (knowing it could have kept going up) , but this is my trading style and for me it works. I'm not always the first one in the pool but sometime I lilke to dive in a see where it goes. Sometime it doesn't pay off and I lose. Sometimes I win big. This is one of those sometimes. For now I'm happy to lock in a profit stop and ride it out to see if the EUR will revisit it's previous lows. There is a 2000 pips range in here and the way the market has been these days I'm up for a risk and payoff and or loss. How else do you know where it's going? When your trade is showing a negative number you have no doubts where the market is going and most certainly where it went after you got in.

GBP/JPY: Long @ 133.83 is under water by 83 pips!

My GBP/JPY trade is under water today by 80-100 pips. Thats ok since I risked the 200 pips in stop loss from profits i made from several of my last trades. This pair is in a nasty sideways chop and has been for a week. This chop though is not like the USD or CAD chop as this pair's chop can whip stops out like eating up breakfast cereal. I will let it ride and if I lose a few pips it's not a big deal. I hate losing pips but hate is an emotion and I'm trying to be more positive towards the bears in my neck of the woods.

Weekend gap will likely take me out I'm suspecting. If it does There will be a new low to enter into.

GBP/USD: Short @ 1.5596 is up 700 Pips!

After missing my long opportunity on the GBP/USd pair I was forced to be patient. I was patient and waited for a good shorting opportunity and it came at 1.55 I entered a short and only 2 days later it's up 700 pips! This pair can really tell you whats happening in the market and after watching the USD fall against the CAD I was ready to catch the GBP fall if the USD corrected against CAD. Well today the USD is correction and the CAD is falling against USD the other pair I watch is GBP/CAD add in the EUR/USD and the EUR/CAD and you got the majority of market action for most of the majors. I dont' throw the YEN in there since the YEN is on it's own terror and is decoupled from the majors.

For now this pair is down and I'm hoping it returns to it's previous lows so that I can scoop a good long after closing this short.

USD/CAD: Long Entry @ 1.1909 is up 300 pips!

After making 1100 pips on the down step of this pair I saw a tech bounce and went long again. That proved to be a bit profitable as today the USD is recovering some it's it's losses. I entered long at 1.1909 and set my stop 200 pips below that. I have raised the stop to a + 50 pips and I'll leave this trade open for the weekend.

GBP/CHF: Long @ 1.6270 Is up 250+ pips

GBP/CHF long entry at 1.6270 is doing well right now and I'm hopeful that it will return to it's previous range level. It may not however, and thats why I use profit stops. After entering a short previously which was completely wiped out as the GBP fell off a cliff I was tempted to take a short but this is why I'm patient. Patients always pays off.

For now on this pair I'm long at 1.6270 and I'm up I will stay in the trade as long as my stop isn't hit. The pound is again heavily oversold against the CHF and I'm feeling it's going to visit it's previous trading level near the 1.70 area at some point. Just never sure WHEN. hmmmm. Mayber I should get a crystal ball.

EUR/CAD: Short @ 1.7426 is still up 400 pips

EUR/CAD Short trade is doing ok still and I'm now seeing a turn in the MACD indicator. I will leave this trade open over the weekend unless severs price action upwards swings up to take me out. I have a profit stop locked in so if it does it will likely head lower after it takes me out. :-) such is the way of the forex. That happens often in this market, it is of no consequence, one can simply take their profits and try again. No one has a crystal ball. So Thats why I take risks, I just don't bet the farm on my trades

USD/CAD: Short Trade Profits 1100 pips!

The USD/CAD Short Trade was indeed very profitable. I'm happy with 1100 pips and anyone who entered this short should be as well. I will look for another entry and maybe it will be on the long side.

GBP/DKK: Long stopped out for another loss

The GBP/DKK pair has not finished it's slide and my long was stopped out for a 200 pip loss.

This new low level is daunting but I'm still long feeling on this pair. Will look for signs of recovery before I go long again.

GBP/CHF: Long Entry Stopped out for 200 pip loss

Well here is the proof that I'm not the best trader in the world. It is proof that I like anyone else make mistakes and mis-judge direction from time to time. This long was clearly to early to take and that's my mistake. Who can I blame? My broker? Nope!

I will look for a better entry price and go long when it looks like the right time.

The CHF has been boosted by a flight to safety as many trust the Swiss in times of trouble. That's ok to me and my loss is nothing more than a few pips of my previous wins.

GBP/JPY: Long Entry @ 133.83 - Up 40 pips - Stop set at 131.83

GBP/JPY Long Entry @ 133.83 is up right now by 40+ pips. Since I made 900 pips on the EUR/JPY pair I'm allocating 200 of those pips to this pair since the pound experienced a fall after the BoE minutes were released. This opened up a long entry for me and I feel it's a good price to buy GBP. Will hope to catch a good technical bounce to the 140's or so.

The USD Bounced against the Yen and so has the CAD. They lag behind the EURO bounce and are a good indicator that the Yen may be weakening.

I'm long on this pair for now and I'll post a win or loss if it happens.

EUR/JPY: Long Entry Nets 900+ pips profit

The Long EUR/JPY trade I opened last week has rocketed upwards 1000 pips My entry price was 121.56 and my stop was raised to 125.56 locking in 400 pips profit. I closed this trade manually at 130.56 neting 900 pips. Not to bad eh?

I may go short on this pair in the next few trading days if it turns and flips to the downside. For now I'm happy with 900 pips and I'll allocate some of them to a few new trades I've been eying, like GBP/JPY which has fallen back to previous low support.

EUR/CAD: Short @ 1.7426 - Up 400 pips

EUR/CAD short trade is rocky and could make a trader nervous about it's direction. I am a bit nervous about it and at the same time I'm not so much. I do think the CAD will bounce back but for now it's having a hard time against the EUR since the market is pouring into EUR due to the turmoil in the North American markets. This trade has been a tough one and that is the case many times when you see a pair highly overbought and you just know it's going to break. I'm at that point right now - I know it will break down but I can't tell when. When I took this trade I sorta knew it would be, but I'm confident the EUR is going to correct back down.

First short was taken out at a 100 pips profit and this trade is now up 400 pips the second time around. I have lowered my stop and locked in 300 pips. Should make up for some of the losses I took on the GBP/DKK pair.

GBP/CAD: Long Entered @ 1.7928 - Stop Set at 1.7628

Ok well I waited and my prefered entry price has arrived. Although I have been knocked out of a few trades that to me is ok since I made quite a bit on several of them I can allocate some profits to some new entries. This GBP/CAD Pair is one of them. If you have been following along you saw me catch several thousand pips on two different up legs of this pair. 1800+ pips I have caught in the last two weeks or so. Not to bad. I was getting ready to short this pair and unfortunately I'm not a robot and I do need sleep so that opened a window for this pair's price to fall without me be able to catch the timing. I missed my short but that is how it goes in the forex. Since I missed my prefered short entry price I was forced to wait until a good long price cam along.

GBP has fallen and touched this price level before with CAD and has held. This may be a bit early to go long as the price may continue downward but thats ok for me since I have some profits to risk. I do not however risk deposit amounts. I only trade if I can risk profits and never risk my deposits because once you're out you're out right. So I took this long and have allocated some profits for my trade and lets see if it turns out to be profitable.

EUR/JPY: Long @ 121.87 is up almost 500 pips - Stop Raised to 123.87

The long EUR/JPY is doing well and may be showing a few signs of fizzling out. I have raised my stop to 123.87 and I'll wait to see where it goes. There is some economic data from Europe due next week and it may help drive the Euro back toward previous supports. if it does I'm locked in with 200 pips profit and there will be no loss. For now I'm long and I'm staying that way until the price tells me other wise. I am however prepared to go short should it revers and this time I hope I'm awake to catch it.

EUR/CAD: Short entry 1.7356 Up 200 pips!

EUR/CAD hit the 1.73 level and shortly after it did I entered a short with a 200 pip stop above the entry. It has since moved lower and I have adjusted the stop to lock in 100 pips profit. I feel this pair is building a short entry as the CAD is oversold. I will elt this trade ride and if my stop gets hit I'm up 100 pips and I'll again look to short it.

The Euro is experiencing a bounce and it's likely purley technical but their eco-data is not doing to bad so maybe it might not be a tech bounce. Nonetheless I am short on this pair for now as I see more potential on the short side than on the long side at this high price level. For now I'm right and I'm up 200 pips

GBP/CHF: Long Stopped out - GBP Tanks 800 pips!

The Pound suffered another free fall this time against the Swiss Frank. Wow overnight My stop gets taken out and afterwards the pound just kept falling. While I was sleeping this free fall landed near the 1.67 mark and is hovering there. Good thing I used a stop to take me out which helped avoid major losses. This is a new all time low against the Frank and since I missed the short entry while I was asleep I am now forced to wait for another move. Given it's recent movements and my recent profits I will risk another long on this pair at these new levels.

The stop will be another 200 pips below the entry.

USD/CAD Short @ 1.2980 is up 1000 Pips - Still open!

Last weeks short trade on the USD/CAD has proven to be quite profitable. I went short at 1.2980 and stopping in to check my trades I discovered it has moved a bit lower below the 1.19 mark. Thats over 1000 pips as the price of this writing is 1.1944.

For now I'm staying short

GBP/CHF: Long @ 1.7483

The GBP/CHF pair ws sold down before and shortly after the Fed Rate Cut. Feds cut the rate to a varialbe rate ranging between 0 and 0.25% causing a bit of uncertainty in the markets. Take a look at the price action. A classic example of a whip saw price movement that takes out stops before and after an economic event. This is why trading the news is not always profitable. In fact most times it a losing battle. Especially if your stops are not wide enough. Many brokers increase the spreads on pairs. Take a look at this huge spread on the FXCM platform

If you trade with this broker you will want to watch out for wide spreads like this during news events. 82 pips on major GBP/CAD Take a look at the spreads on GBP/USD

News trading can kill your account.

EUR/CAD: Short building?

EUR/CAD has rised 1000 pips since I last wrote of a short opportunity. My previous short was taken out with a small profit as the EUR rised above my suspected short area. Since then I have been watching with an eagle eye to see where it ends up. 1000 pips later I see it is yet again running out of steam and may be presenting a good short opportunity. I will wait till the FED decision is announced and see where this pair goes.

Trade Alert: EUR/GBP - Short Building

The Euro has reache new all time highs against the GBP and it's running out of steam it seems. Keep your eyes on this one and look for a good short entry near 90-91 area. Stops should be set about 200 pips above the highest high. This trade may take a while to move lower but it's looking as if it's building into a good shorting position. Given the rise in GBP/USD and others.

EUR/JPY: Long @ 121.89 is up 250 pips

Euro is bouncing across the board and is making for a good long on this pair. I entered long at 121.86 and have moved my stop to lock in 100 pips profit. I will let it ride at this level and leave the stop unless it rises higher by another 100 or so pips. If it does I will raise the stop another 50 or 100

GBP/JPY: long @ 136.64 is still in the game

My long GBP/JPY trade is still hanging in there and is still up above my buy line. This pair is one of my fav's as the movements can hardly be matched by any other pair. Sometimes though it can lay flat before anything happens. That flat direction is going on right now, and I'm glad it moved above my buy line so that I could lock in a stop. I often lock in stops above my buy line even if it's only 10 pips. This prevents me from holding a bad trade should it go against me and opens up the possibility of a better trade at a different level. I am curious to see how this pair reacts to the FED decision expected later today.

GBP/CAD: Long Profit Booked - 600 pips!

The long GBP/CAD Trade I had open was closed for a 600 pip profit. Not too bad for a few days of trading huh? I did miss my short opportunity though and that is just the way it is in the forex. Before I went to bed I raised my stop and voila The price swung down to hit the stop and I'm out of the long. :-( because I was sleeping I missed my short opportunity near the 88/89 level and thus another good proof of point that I'm not the perfect trader. I will wait now for another long entry since I missed the short

GBP/DKK: Long @ 8.3170 is under water

The GBP/DKK Trade is under some water today and since I've been profitable on several previous trades I have left it open to see where it heads and where it actually bottoms. Lets look at this pair to see where it has been on the charts.

First the monthly chart shows that the GBP is normally valued much higher to the DKK and for whatever reasons the market has decided to continue to sell it down. There may be fundamentals that I'm not aware of and of course that makes for a tough analysis. I do know however that is is very undervalued according to the monthly charts etc. take a look at how high it used to trade.

The daily chart is showing the same free fall. This is why I'm bullish on this pair. Given the state of the Pound and it's oversold condition across the board I feel the DKK may be highly overvalued. The Danish economy is not immune to the problems in Europe and this will effect the Krona soon in a negative way.




This pair is due for a big bounce. The pound is rebounding from it's low levels against the USD and CAD and I feel this will affect the DKK and cause the pound to rise. This pair move nicely and I've been taken out of a previous trade. My attitude is "so what" that means a better entry. I am prepared to hold a long on this pair for at least a month or more to see where it will go.