Cable Update (GBPUSD)

You know....sometimes to get an overview one needs to have a chart with as little distractions as possible in order to obtain a pure picture of current state of markets...
I will add price markers where appropriate though

Selling is not good at this point, we need to test 1.5150 before we can even THINK about it. The Long actually paid off. Still looking to add more longs. GL

That turned out to be the wrong choice on my part in the end...
Stopped out.

great, just got stopped! havent been back 10min and lose 2%...

loving life!

Thanks Fudomyo...

ping pong indeed....may have something to do with DST shift ....anyone done any research regarding market behavior in this regard?

haha... so we did the same thing

The pound staged a massive short covering rally in morning London trade piercing the 1.5100 figure after tumbling to 1.4980 a few hours earlier. The fall was triggered by critical comments from the European Commission which stated that, “"The overall conclusion is that the fiscal strategy in the convergence programme is not sufficiently ambitious and needs to be significantly reinforced. A credible timeframe for restoring public finances to a sustainable position requires additional fiscal tightening measures beyond those currently planned.”
However, shortly thereafter UK Treasury Secretary Byrne vigorously defended the government’s actions stating that EU has “got its judgment wrong over the deficit.” The comments spurred a short squeeze which was aided further by much hotter than expected DCLG house prices which shot up 6.2% vs. 3.5% eyed indicating that UK housing sector is beginning to firm up.
Meanwhile in EZ the ZEW survey printed a bit better than expected at 44.5 vs. 43,5, but still lower than last month’s reading of 45.1. This was the sixth consecutive monthly decline in the ZEW survey suggesting that economic activity In the region remains stagnant as the worst winter in 14 years hurt construction and consumer spending. The euro could not clear 1.3700 on the news as traders remained cautious ahead of the FOMC decision later today.
The key focus in FX will be on the FOMC release which is due to come out later today at 16:15 GMT will be the “extended period language” in the post meeting statement. If the Fed changes the wording to a less dovish construct, the dollar should rally especially against the yen and could take out the 91.00 figure as markets begin to price in the possibility of rate hikes by the end of Q3 of 2010. On the other hand if the Fed leaves the language unchanged currency traders are very likely to be disappointed given the growing consensus that the US economy has finally turned the corner towards recovery with positive job growth imminent this month.
Ahead of the FOMC North American trade will get a glimpse of the latest US housing data with both starts and building permits due at 12;30 GMT. The expectations are for a decline in both which give the harsh weather conditions is not surprising. However, housing has been the weakest part of the recovery story and may be the one critical factor to keep the Fed stationary for a month more..

Yeah mate, my 15min looked good for it, but hey ho, never mind, now the problem is I cant buy this, not without a retrace, so have to sit on the sidelines, selling also seems to be a bad option at the moment, sometimes sitting it out is the better way to go, for all I know this could be back at 1.50 or at 1.52 in the next hour...

What is your plan?

From a different perspective gu should go to 5210 -M3 (possibly) and just maybe down

I still think selling is a good option but dont have the resistance to give me a good trade

maybe wait a little and see... If it breaks down again I might get in below 51 but not really sure! dont have much to go on right now so will also wait until further notice.

My weekly view is definately bear if we talking next two weeks but seeing as I trade short term, doesnt help me much

All the shorties were talking and drooling and the trap was set and sprung. I can imagine all the sellers jumping down hard on that one. You could almost see it happening. There was no double kiss, just a blast and then a rip thru taking out all the new shorts and never looking back.

The good thing is that nobody should be a loser here if they got on the train.

j

Thumbs up to all the patient traders and I hope you all got a piece of this one.

Jim

I've been long since 1st March at 1.49004. Looking to take profit at 1.54847, but stop brought just below the recent swing low, now risking 0.04% of balance.

Could go anywhere, but looking for that next pivot before a retrace down, which will happen in the near future. The question is when.

Good luck to all.


Dazzer

There is still a lot of momentum left on the upside.

LOL!!! I have the same "situation", for not calling it a problem. Hard times for traders like us mate under current market situation! G/L with your trades mate!!

on second thought, one shouldnt go against the trend and at the moment, ITS UP! so guess maybe wait for pullback and buy. But really dont feel comfortable with that.

Ai, maybe just do nothing!

Looks like the 1.5130-1.5150 region could present itself as intraday resistance...

yeah, really struggling with all this ping pong! Argentina is a awesome country, was there for 3 weeks and never ate such great meat in my life! Also drank a quart with every meal

Beautiful country, really! Maybe if my forex starts to pay up, I can go there again one day

good luck brother, whatever you decide to do in this market!

My signal at 06:30 was LONG but it was a confusing picture. Then Sterling tanked and I went in short @ 15007 only to find support @ 14976. As many people on here went long, and my signal was long, and the tide was turning, I decided to close my short and went in long @ 15001. That proved to be a smart move and thanks to those people who were adamant in going long.

I will be closing half my long position at the next resistance @ 15130 now that it has clearly broken 15100 and move my SL for the other half to 15080. There is still room to go north, but I want to bag some pips.

I will be looking to long-term short @ 15230. Good luck and I hope you have a great day.