Since its peak of 1.9950, GBP/USD has plunged 2275-points, 650-pips in the last week. The previous time it was at this low a level it spiked 1800-points practically straight up. Is opening a long on GBP/USD a good trade? If so, what would be a good number of pips to set as a TP?
So, you're saying you think the GBP is going to fall further than 1.7675? To where, like to 1.7500s? I just opened a long trade today at 1.7681. TP = 1.9400.
I have a long trade open for GBP/USD. The issue is several fold. First, the moment people begin to think the tightening is over on the Fed, we're going to return to the Current Account issue (which continues to get worse and worse rather quietly). Watch the difference in yields with Ts versus gilts in the future for your sign.
Can anyone who has bought cable on Friday tell me a few specific reasons why. It has fallen a long way I agree but it had done that when it was at 1.81! I am not saying it won't bounce but at the moment I can not saw one reason to buy it. My advice would be to either what for the bounce to have already started and join the rally or perhaps wait for the MPC on Thursday. A lot of the fall in cable has been on expectations that rates in the UK are coming down. If they are not cut this week then a rally may ensue.
You answered your own question. "If they are not cut this week..." I do not believe that they will be cut this week.
Dude, you wrote that yesterday. Now you're asking whether it's a good time to go long GBP? Here's a hint: it's a hell of alot better time compared to when you first went in. So does this mean you're going to close this thread out too?
I would wait until the commercial traders have built up a sizable long position in future contracts. See http://www.cftc.gov/cftc/cftccotreports.htm (CME Long Form). These traders are often early but rarely wrong. Once they are significantly long, you should wait for a technical signal. I hope this is helpful. Best wishes Morty
Thanks for noticing. I have multiple accts. One has GBP/USD and other pairs too. Another one has only GBP/USD (the one I just opened the long on). Happy now? Go away.... sKaLpZ