Be extra careful today if you want to trade EUR and GBP pairs because their Bank rates and ECB press conference will possibly create a lot of whipsaws. I am bearish on both of them and under normal conditions I would short them. GBP/USD is under support turned resistance (1.6040) and EUR/USD will probably break 1.3020 resistance (or at least touch it). Again, this is under normal conditions. Today anything can happen.
Oh,almost forgot: this is my personal opinion, I am not recommending any investment to you.
ECB bank decisions have had a larger than normal impact in this last year but I think this time the market is still in a lull and is not as concerned about the outcome as in recent months. Market volumes are slowly returning to full strength, I think any whipsaw at this stage are unlikely. On a short term basis, I expect trend analysis to be very good for finding direction (on, say an hourly time frame). As I dont think most traders are really looking to "rock the boat" too much.
EUR/GBP DAILY as of Thursday, 10 January, 2013
Euro Dollar / British Pound broke above the upside resistance level of 0.81, 3 day(s) ago. This is a bullish sign. This previous resistance level of 0.81 may now provide downside support.
The MACD is currently BEARISH. The MACD is currently below the signal line. The MACD crossed below the signal line 8 days ago. Since the MACD crossed the MACD moving average, Euro Dollar / British Pound's price has increased 0.65%, and has fluctuate from a high of 0.817 to a low of 0.808.
The last Stochastic signal was a Buy 3 Period(s) Ago.
A buy is generated, the RSI has move out of the overbought area. The last signal was a Sell 9 days Ago.
The ADX is currently below both Plus and Minus Directional indicators. Should not initiate any trades right now. The Directional Movement Indicators (DMI) currently is not indicating a specific price direction but the overall bias for EURGBP IS DOWN.
It seems like Draghi had a big effect on the Euro as you rightly stated Bogdan! The successful bond auctions in Europe also boded well for the Euro. As for Asian currencies, it seems like Abe's pledge has worked as the Yen has continued to fall.
It seems so, my friend, but could I be any more wrong on direction? LOL. Anyway, I bought yesterday GBP/JPY, CHF/JPY and I kept a long that I previously had on EUR/USD (what Draghi said totally changed my bias on the pair). I did that on a Forex Demo acc (demo because I am testing something new and I don't mess with real money if the strategy is not thoroughly tested). Now I'm sorry it wasn't on a real money acc but I don't worry too much about that because other opportunities will come. Here's how my demo acc looks now