The Bullish Case Builds for EURGBP

Last week I wrote about EURGBP, saying it’s now time to buy the pair. When I published that article, it was trading at 0.8380; it’s currently trading at 0.8442… about 60 pips higher.

Sixty pips is pretty solid, especially considering EURGBP’s pip value is worth more than most pairs. One standard lot yields ~$12 per pip compared to $10 per pip for something like EURUSD.

But in that article I was looking mostly at the daily and weekly charts. Today I’m drilling down to some lower timeframe charts to show you how this trade is developing and why I’m feeling increasingly bullish. (more…)

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GBPJPY: An Early Warning Sign?

Not long after the open this week I became a bit weary of the strong rallies we’ve been seeing in certain pairs. USDJPY and other Yen pairs like GBPJPY have been on impressive runs since the US Presidential election. With the Fed rate hike out of the way, I’m really starting to watch closely for signs that these moves are fizzling out.

And I think we’re seeing some of those potential signs in GBPJPY. Let’s dig in to the charts and see what’s going on. (more…)

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What’s Next for the USD?

The US Dollar has been on an absolute tear lately. This is great as it has presented some extremely strong trends to trade. This is one of the reasons why our forex signal has been performing so well. We’re up a whopping 39% this month after gaining 23% in November.

Our forex signal account has been going gangbusters!

In fact, this signal was launched 30 days ago tomorrow, which means we’re up 72% in a month’s time. That’s insane, and not sustainable. I’m writing this post to take a step back and think through my thoughts on what the next couple weeks may bring for the forex markets. (more…)

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It’s Time to Buy EURGBP

I’ve been watching EURGBP for literally weeks as the pair has been going through a major correction after a huge move higher. I’ve seen a lot of chatter on StockTwits and forex forums about buying the pair at a “discount”. This chatter has been going on for weeks, and I’m sure these folks are either deeply in the red or stopped out by now.

The other week I finally pulled the trigger on buying this pair. That doesn’t mean much; I often take positions to help me monitor them, starting with a small buy or sell and seeing how things react. But today I added another buy, so let’s take a look at why. (more…)

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Cautiously Bearish GBPJPY: Here’s Why

I hate trying to pick tops and bottoms. Most of the time it’s pretty unprofitable. But it’s those rare times that it is profitable that make it so tempting. That said, when I am attempting to pick a top or bottom I try to be mentally aware of what I’m doing: trading against the trend.

This is one of those times.

It takes discipline and the ability to admit that your timing may be off. Right now I’m attempting to pick a top, either short-term or long-term, in GBPJPY. But I’m doing so with caution. Let’s dig into why I think we might be in for a pullback. (more…)

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Forex Trade of the Week: GBPUSD Ready to Fall

I’ve been kicking around the idea of a new idea for the blog: one trade I pick to start the week and see how it turns out by the end of the week. The trade of the week would assume a position was opened at the start of the trading week and closed at the end of the week.

I likely won’t post a trade every week, but I’ll post when I can. And I’ll start tracking the performance of these weekly picks too. So let’s start our first trade of the week with GBPUSD!

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Forex Signal Service Starting From Scratch

Last week I quietly launched a forex signal service with the ability for traders to auto copy my trades via SignalStart. I chose to start with a very small account, just $400, to prove a point to a friend that I’m attempting to mentor. That point is that you can start with a tiny amount of money and build it into something substantial. I named the signal “To The Moon” to symbolize that endeavor.

And the first week I traded was phenomenal. I returned some 20%. That’s nuts! But then everything went to hell this week, and I want to take a step back to address why I believe things have gone so poorly as of late. (more…)

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GBPUSD At An Inflection Point

Every strong trend is eventually broken, or at least takes a breather. It’s important to recognize when this transition is taking place in order to be able to respond accordingly. If not, it’s a classic example of not being able to see the forest over the trees. Getting caught committing too heavily to a trade in either direction when a pair is in transition can result in multiple strings of loses. Nobody wants that!

So what does a transitioning trend look like? The other day I talked about GBPUSD and how the higher timeframes were in obvious downtrends. But what I didn’t mention too much was the lower timeframes and how those are actually showing potential uptrends. This is a classic example of a trend that is now in transition, and the biggest tip off to this is often our trend and trade tracker tool. Here’s what it was showing yesterday:

Yesterday the weekly and daily timeframes were both in downtrends, yielding a sell signal on the daily chart. But the hourly and 15-minute timeframes were in uptrends, yielding a buy signal on the 15-minute chart. (more…)

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