Ok yesterdays lovely bearish set up for USD news, well, should have been bearish, there was good news out of the US but just look at how GBP responded, EUR as well went hurtling up into the air like a scared rabbit running from a fox. A lot of traders lost money yesterday in this trade. Especially those who over leveraged their accounts.
Actually it kind of retraced a bit but not as low as it has been.
Today we have EUR news and a very important italian meeting that should bring the Euro down again. But enough nervousness and panic! Could it be EURGBP/USDGBP are on a turn round? After I wrote this I read this (clicky) from John Kicklighter who I hold in very high regard, I think the next few days trading could mark a reversal from the continual downward trend we have been experiencing for GBPUSD/EURUSD and a few crosses.
Trading the trend works really well 90% of the time until the trend starts changing then you have to make sure your stop losses are set right and hold your breath (but not for too long as it is unhealthy).
Someone get me an earl grey tea, I need to calm down. So now we are in recovery mode bringing profits back from yesterdays losses. I have to say I don’t lose that many trades, but when I have a “bad day” then it’s a matter of picking yourself up, brushing yourself off and getting back into the fight.
Incidentally this makes interesting reading as it seems to me they are still backing the USD.
BUT this mornings events have now convinced me that GBPUSD/EURUSD are both in reversal and become bullish. I think John is right. This is the trend reversal.