Well well, back from the dead and back to blogging. I had a rather busy week last week and being that it is the end of a long weekend, I am now back full-time on the job. Results of last weeks experimental trades resulted in a negative profit of -33 pips on the EUR/GBP Daily chart as it simply was moving sideways proving that it isn’t so great exiting in the support areas between the 30 and 50 SMA’s however it did at its peak reach +35 pips. Ah well, you live you learn and it looks like i’ll be taking the safe route from now on.

In terms of news, Chairman Ben Bernanke delivered another pessimistic forecast to Congress on Thursday leaving little doubt that the Fed will continue to lower rates, most likely by another 50bp at the next meeting in March.

There also seems to be a fire sale on the GBP with ALL crosses involving the sterling pound and there exist multiple pairs which anyone can capitalize on at the moment it seems. This new downtrend was sparked by UK government has decided to nationalize the troubled mortgage lender Northern Rock PLC and rejected two private offers despite complaints and threats of litigation from the companies shareholders. This in turn has led the market to believe that more rescues of other UK banking institutions caught in the sub-prime credit crisis may persist in the near future.

I’ve re-entered the trade again as the pair broke out of its flag formation last week however I will enter with a smaller lot than usual as the Northern Rock news also helps my case. If the pair breaks the .7500 region today, it’ll act as great support.

EUR-GBP Daily, Feb. 18, 2008

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In other news, you guys might want to peek at my buddy Autopips’ blog as he has been having tremendous results on the Demark Trend Line technique with GBP pairs highlighted with 2,543 PIPS on GBP/CHF Auto Trading System alone in January 2008. Perhaps I should go back and revisit this method soon?




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