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.