Today, pff, Cable, Cable, Cable - she can open a whole can of whoopass within minutes. Stopped out earlier, and now reviewing direction.
I've been telling myself for ages that I should start taking some shorter-term trades - basically, 09:15 GMT direction... particularly if it agrees with the 4hr Guppy profile. Today was not really one of those days, as the 4hr profile is compacting on the red MAs, with no real reversal of these at present. However, the daily could be argued to have shown the initial turn for a run north, with a retracement yesterday that was timed nicely for the rebound off the red MA twist come news release this morning. Much prefer to take entries on retracements that, kissing an increasingly spreading red MA profile, head off agina in the same direction as the red MAs.
Today was what I have been observing for some time. Price is marked down prior to news release, and then bang, off London go in the opposite direction. Of course, one has to bear in mind the Frankfurt fake out - my statistical analysis suggests a reversal upon such moves for approximately 80% of the time. Yes, I am guilty of, when being in a positive trade in the direction of Frankfurt open, thinking that that trade will fall into the 20% bracket.... SL always to break-even if, in the morning, trade is positive and London yet to open.
Tomorrow should be interesting. I think I will see if the US/Asia sessions pull price back somewhat, and watch what Frankfurt do tomorrow morning prior to the UK claimant count change. If news is good, I think a push up to the 1.54 region that I have mentioned several times before, may not be so far off. Yes, I know, I was postulating upon a drop to the 1.47 region a day or so ago. But as we all know, in such times, prediction is fraught with divergence.
Author of: For Pip's Sake! (Available at Amazon... :-) )