Dynamic Trader Forex Blog FXCPS.co.uk: GBP Homecoming ?

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : DAY Chart (Posted Below)

I trust we all had a good weekend and time to re access the markets after wed evenings extra ordinary movements. I know some people were on the right side of the moves, and I have heard some people comment they knew they were about to happen, but I would imagine the majority of traders would have been stopped out of their positions and wondering what they had done wrong. Oh well in today's turbulent and volatile markets these things are going to happen and it is one reason for using a stop and managing your trade.

This week I have chosen our own "Cable" to follow on looking through the charts. The Cable has been in a down trend since it's peak in November 2007. The steep drop has seen a few rallies at the end of 2008 and start of 2009, with a low of around 1.35 in the last week of January.

We have a nice pair of trading channels since November 2008, of which we had a BOB on Thursday last week. Dynamic Traders using their tool bag would not yet be in this trade as they sit awaiting entry, however their traps should have been set and primed.

Will price break out or return to the comfort of the trading channel, let's see this week.