GBP/USD on speed? What goes on?

[montmorencyt2w]

If you'll pardon my French, WTF's got into the GBP/USD today? Shot through 1.5 and didn't stop. It's heading south as we speak, but is it just pausing for a breather?

I just find it a bit surprising since the GBP/EUR is on the floor.


I notice that Crude has taken off today as well, which presumably is reflected in the weakening of the dollar, but even so.


Any thoughts?

 

[FXSCALPER2]

If you'll pardon my French, WTF's got into the GBP/USD today? Shot through 1.5 and didn't stop. It's heading south as we speak, but is it just pausing for a breather?

I just find it a bit surprising since the GBP/EUR is on the floor.


I notice that Crude has taken off today as well, which presumably is reflected in the weakening of the dollar, but even so.


Any thoughts?

Cable is basically a worthless currency. It has been for quite a while. These rallies are one massive BS.

 

[wasp]

great for day trading though!

 

[montmorencyt2w]

Cable is basically a worthless currency. It has been for quite a while. These rallies are one massive BS.

Would you care to expand on that? I mean, I thought the GBP was worthless, and indeed in relation to the Euro, it certainly seems to be.

Wasp: Might have been...

Wish I'd been long on Crude, not to mention GBP/USD...

Regards,
M.

 

[KillPhil08]

Did it not break out of the downtrend hence weight to the upside?

 

[montmorencyt2w]

I hadn't quite thought of it in those terms, and maybe it depends exactly where you draw the trend lines.

You may be right. I'm honestly not sure what it's doing.

 

[FXSCALPER2]

I hadn't quite thought of it in those terms, and maybe it depends exactly where you draw the trend lines.

You may be right. I'm honestly not sure what it's doing.

It is not doing anything it hasn't be doing for donkey's years: it goes up, it goes down. It is mostly random bollox based on what a bunch of wholesale monkeys do for whatever reason. It may also be the moon lining up with Jupiter. Either way, cable does this sort of thing all the time.

 

[montmorencyt2w]

Fair comment. It so happens, I've not messed with cable that much before; this wasn't a good time to start 🙂 Or to slightly misquote Steve McCroskey
(LLoyd Bridges) in "Airplane": "Looks like I picked the wrong week to quit smoking/drinking/start trading cable".


Regards,
M.

 

[Alibubble]

Sometimes a pair just starts doing the unexpected. That's just a a normal part of forex trading. Prices change.

 

[montmorencyt2w]

I guess so. And as some of the analysts have pointed out, the pound and the dollar are exposed to some of the same risks, so exactly which one tanks first at any given moment may well be down to relatively fine detail not obvious to everyone.

I suppose that's what makes this an "interesting" pair to trade, if one isn't a maestro 😀

 

[rnicoll]

Would you care to expand on that? I mean, I thought the GBP was worthless, and indeed in relation to the Euro, it certainly seems to be.

IMHO, it's a matter of how worthless they are, relatively. The US is currently throwing money around like there's no tomorrow (there may well not be), and that should cause dramatic inflation shortly. On the other hand, the UK economy is fairly trashed, but not quite enough to make the GBP entirely worthless.

 

[montmorencyt2w]

Possibly what Fxscalper meant (in that slightly grumpy way he has that we have come to know and love... 🙂 ), was that cable as a pair was rubbish to trade with. I know that some people seem to be able to make money trading it, but I guess they know what they are doing 🙂

For the less-gifted, EURo pairs seem slightly more trending and predictable (or less unpredictable).