British Pound Whipsaws Us Out of Short Positions

| 4 april, 2013 | 0 kommentarer

ssi_gbp-usd_body_Picture_13.png, British Pound Whipsaws Us Out of Short Positions - Now What?

GBPUSD – Retail traders continue buying into British Pound weakness against the US Dollar (ticker: USDOLLAR) and Japanese Yen, but the dramatic reversal warns against going against the crowd.

Trade Implications – GBPUSD: Our purely sentiment-based Momentum2 strategy most recently sold GBP from $1.5142 and ¥142.41, while the more volatility-friendly Breakout2 system was short from $1.5081. Those positions looked good until we saw an astounding post-ECB reversal in the US Dollar, and in fact the systems are now flat until we see a more substantive breakout or breakdown.

As with the Euro, we would be careful of potential whipsaws here as we trade between key support and resistance—keep stops tight and leverage low.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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ssi_gbp-usd_body_1a_1.png, British Pound Whipsaws Us Out of Short Positions - Now What?

View how to automate the high-volatility Breakout2 Trading System via our previous article and webinar recording.

Auto trade the trend reversal-trading Momentum2system via our previous article and webinar recording.

Trade with strong trends via our Momentum1 Trading System and view an archived webinar

Use our counter-trend Range2 Trading system and view an archived webinar guide on automation

New to FX markets? Learn more in our video trading guide.

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Kategori: Analys från DailyFX

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