Very interesting observation! I was thinking and still think so that GBP/USD is in a long term range conditions and will stay in this range this year, but there could be some major change as we see everyday the economic policy changes.
The GBP/USD is a surprisingly volatile pair given that it is one of the majors but when you compare general price activity to the EUR/USD, the size of the movements can be very different. This should be surprising given that we are dealing with values against the same currency (the USD). At the moment, the GBP is actually vulnerable to major price moves against some of the Non Dollar currencies, given the fact that those currencies had much larger moves in recent weeks.
GBP/USD is really a highly volatile pair as compared to the other majors. I don’t think uj.forex that it will test 1.5200 very soon. I even think that most probably it will test the upper boundary at 1.63 in the next few months. If there are more problems in Euro zone and more negative sentiment on the Euro, the British pound will trade in the opposite direction and could grow to higher levels. Also I like the volatility it gives more opportunity to traders, but also some problems especially for binary option traders.
British pound is very week last several weeks. I don’t understand what happens? British economy is in not so bad shape and even better than most of the European countries, but the price action dictate lowering the GBP against the Euro. Why is that? I expect that this is a temporary trend and will last no more than one or two months from now, but what do you think?
Hi traders! Today I have seen that the GBP/USD went down to 1.54828 and I thought that tomorrow it will be higher. I am not an experienced trade yet , but , what do you think? Should I doble it up? Or it will go down?
Thank you (:
Hi, Gsrus! GBP/USD is in a strong downtrend on four hour chart (H4) and the possibility for further continuation of that trend is not small, The price is now on a fresh low 1.5480 and there is a chance for today or Monday to see some retracement, so if your position is small enough you could wait till Monday or double it and try to exit with smaller loss or with profit. If your position is too big it is not recommended to double it just wait for some bounce to close it at better price.
That’s my short advice. I hope it will help you. It is not a good idea to close the trade at the worst moment as it is now, but if you trade too big you will have no choices.. That’s why it is better to not overleveraged your positions!