Cable Update (GBPUSD)

That gap happened because; the Gulf countries will not end peg to the dollar, also remember taht, the BOE this week will keep interest rate as it is. So, Banks will start selling the pound. I think, 97.60 is the top for this gap

4give my ignorance but y would banks sell pound???

take a look at the secong half of this page, there talking about forex gaps, this will give you a better understanding of forex gaps.

http://www.investopedia.com/articles...layinggaps.asp

I'd say 70% really, not 90% sadly but still those be GOOD odds in this game.

It's normally manipulation, someones holding shorts so they play the game using the low volume move the market down cover and/or go long ( someone with huge pockets ).

The 30% is where, they lie and cheat and trap us the people that play the gap close.

Yes, I think Banks will sell it and I did at 97,68

I used too, years back trading futures and stocks where you get a gap every day potentially, but I don't trade sunday nights really, so nope.

Gap trading is nothing new. It's been used in the stock market and in commodities trading for decades, and takes advantage of the difference, or "gap" between the closing price of the day before with the opening price of the next day, but this strategy is ignored in the Forex. Why is that? Well, gaps rely on a market close, and when the Forex market never closes, it's really hard to get a gap or take advantage of it.

In fact, during an entire trading week, there is only one time when using gap trading strategies in the Forex market is even possible! Sunday night at the open is the only time that gap trading Forex is possible. Boring?

For most of us, yeah. Pointless? Oh heck no. While different trading systems are looking for that .5% or that 1% above the 50% mark, some signs and indicators suggest that the Forex gap method is correct over 85% of the time. No, that's not a typo, and that's not hype. Once a week may be boring, but those numbers make it worth the wait and should have you drooling at the possibilities.

So how do you trade the gaps on the Forex market? First, understand that there are 3, and ONLY 3, things that the price can do between Friday's close and Sunday's open.

They can:

1. Open above Friday's close, which is called "gapping up"

2. Open below Friday's close, which is called "gapping down"

3. Open at the exact same price, meaning there was no gap

There can be large gaps, often referred to as "full gaps" in price, or small gaps, known as "partial gaps." As far as strategy, there's no difference between the two. Good gap trading strategy works for all types of gaps. The one thing to watch out for is gap size.

I don't recommend trading a gap unless there is a 15 pip difference, and this strategy is best used with the major currency pairs. Knowing this, the rule to trading gaps may seem the opposite of what you would expect, but if you want to be right 85% of the time, here's the rule you want to follow:

Whatever direction the gap is going, you want to trade the opposite direction. So if a pair gaps up, sell short, if it gaps down, buy more. This strategy works a stunning amount of the time, and can be the edge in the Forex market that you've been looking for.

thnx man

Thx for all these info. 30 pips enough for me. Let's go for dinner.

sorry i only go out to dinner with women. ,

This is the work of a comic genius

we got u.k. and u.s. news comming out on monday so we should see some good price action.

so is this it
the gap fill out or do u guys still expect to see more than 9770

, we could see 9500 by tommorow,

I'd appreciate it, if it saved up the good action for Wednesday, Thursday and Friday pls, thanks


didn't close the entire gap, but 50% woulda done nicely!!

no bro seriously im asking because the gap was barely half filled
so im asking to know how to trade a gap next time

i jump out at 9768 i try not to get greedy, trading the gap is realy not part of my system but i trade it anyway.

As with everything don't get greedy, it'll stall and reverse @50% or it'll head to above the prev close, reversing at 50% bodes badly for the currency, wasn't a fake serious sell interest.


Check all the other main pairs charts, the other 3 I follow gapped down and headed to the gap amount above the prev close.

Don't get too excited though, only happens once per week!!

The reason for this acute fall in cable seems to be from the problems at Bradford and Bingley, building society - CEO resigns, increased bad mortages and probable profits warning. So the gap may not fill till 9am UK time, when B&B is expected to release a statement.