This rocky market action is making for some really good trades in the GBP pairs. The ound is highly oversold and highlyundervalued when compared to where it was several months ago. I took this long as I almost always play this pair long. It is my favorite pair. I live in Canada and I'm well aware of our economic status. There is a bounce back in oil today and that may lead this pair a bit lower later on today or over the next few days. I am tempted to take a short on this pair soon. But I will wait for the best timing so that I can catch the best selling price. Somewhere around the 1.92 area is where I'll try to short it as that area was the price level where it fell last time. Last time I caught 1000 pips on the up. This time I may look to short after I close this current +600 pip long trade
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this thing should really sink on wednesday with 2 million barrel oil cut, right? have you entered short yet?
ReplyDeletecongrats on the profits, that was good spotting at that low long entry.
That may happen Jim. I prefer not to put my eggs in the basket until the chicken has laid them though.
ReplyDeleteI try to go with the flow. I'm not always right. I'll be the first to say that.
The proposed cut in oil production may actually drive the Canadian dollar up but not in the way you may think. Canada's oil producers are not announcing huge oil cuts. Britain is a large oil producer given it's size and population. Hard to believe Britain produces nearly 50% of it's own oil. Not to bad considering Japan and a few others import nearly all of their oil.
It will be interesting and I hope this pair does sink like a stone since I'm almost alway long on this pair. I am looking for a good short but the USD/CAD pair has been falling while the GBP has been rising against CAD. Usually when CAD goes down against USD it will also somewhat track with GBP/CAD
This is indicating a De-coupling of the two pairs - I'm not the worlds most leading expert in these matters but it seems the pound is coming back a bit from it's recent heavy fall.