I_will_win_this
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Hello everyone!
I traded the GBP/EURO profitably today but I am new to Currencies Trading (infact fairly new to trading in general) and took my profits far too early, staying in the trade for only a very small part (17 ticks) of the major move the GBP has had today.
However, the reason I am posting is that I think this still has remarkable potential for going long and would welcome any feedback on my opinion.
The Initial reason was the fundamental news that the French voted "Non" to the referendum.
I then had a look at the technicals this morning. I've included a chart.
As you may see, the GBP has been in an uptrend since mid March with a recent retracement beginning in May.
Since the 17th May we've seen the retracement end and some sideways trending. You can see the GBP continually break 1.4550 in intraday trading but not manage to CLOSE above it (or it's 200 day Moving Average which runs almost exactly along the line)
At the same time we can see bullish divergence in the Momentum Indicator which you can see is making higher lows even though the price is staying fairly level.
The same is happening on the Stochastic Indicator. May 18th and May 27th have almost identical price action (the latter closes slightly lower) and yet the Stochastic shows a higher low.
In addition to these, the MACD Histogram is showing less and less selling of the GBP as the RSI is demonstrating arguably oversold conditions at 40.
Today the GBP has had a fairly large move upwards. At the time of writing this it's 1.4620 (0.47%)
What makes me consider the possibility of a longer term trade is that today you can see the price move up through both the 30 and the 200 day Moving Average which are the longer term MA's. (Usually I use 8 which it has also moved through)
Usually a move as forceful as this doesn't suffer an immediate retracement and with the much publicised worries in France the situation could get evern worse for the EURO. I should hasten to add that, as is probably fairly clear, this is both a fundamental and a technical analysis based trade but I'm not strong on the currency fundamentals.
Please - do respond and let me know what you think and correct me on anything if I'm wrong - like I said, I'm fairly new to this.
Thanks.
I traded the GBP/EURO profitably today but I am new to Currencies Trading (infact fairly new to trading in general) and took my profits far too early, staying in the trade for only a very small part (17 ticks) of the major move the GBP has had today.
However, the reason I am posting is that I think this still has remarkable potential for going long and would welcome any feedback on my opinion.
The Initial reason was the fundamental news that the French voted "Non" to the referendum.
I then had a look at the technicals this morning. I've included a chart.
As you may see, the GBP has been in an uptrend since mid March with a recent retracement beginning in May.
Since the 17th May we've seen the retracement end and some sideways trending. You can see the GBP continually break 1.4550 in intraday trading but not manage to CLOSE above it (or it's 200 day Moving Average which runs almost exactly along the line)
At the same time we can see bullish divergence in the Momentum Indicator which you can see is making higher lows even though the price is staying fairly level.
The same is happening on the Stochastic Indicator. May 18th and May 27th have almost identical price action (the latter closes slightly lower) and yet the Stochastic shows a higher low.
In addition to these, the MACD Histogram is showing less and less selling of the GBP as the RSI is demonstrating arguably oversold conditions at 40.
Today the GBP has had a fairly large move upwards. At the time of writing this it's 1.4620 (0.47%)
What makes me consider the possibility of a longer term trade is that today you can see the price move up through both the 30 and the 200 day Moving Average which are the longer term MA's. (Usually I use 8 which it has also moved through)
Usually a move as forceful as this doesn't suffer an immediate retracement and with the much publicised worries in France the situation could get evern worse for the EURO. I should hasten to add that, as is probably fairly clear, this is both a fundamental and a technical analysis based trade but I'm not strong on the currency fundamentals.
Please - do respond and let me know what you think and correct me on anything if I'm wrong - like I said, I'm fairly new to this.
Thanks.
