Back in Time

Good evening dynamic traders. I was listening to the radio today and heard a debate regarding the direction of the Pound Dollar for the next 5 and 10 years. I must say the debate was more in the realms of an argument but was non the less interesting. My conclusion was it showed how desperate people are to always predict, to always be right and to be recognized as always being right. It made me want to phone in and suggest they both attend a Robbins event.

Moving on from prediction to technical analysis, the GBPUSD chart I had put up on FXCPS.com on Friday shows we are trading in a range and the market is finding resistance at the 1.5000 level from the beginning of this year. The last time Cable saw these prices was back in June 2002. From the recent low of January this year, the last time Cable saw 1.3500 was way back in September 1985. The GBPUSD has reached lows from 24 years ago which shows how badly the GBP has performed against it's counter part since reaching the highs of 2.1000 in November 2007.

So where next for this pair? The medium and long term trend is down and short term is up. After that massive downtrend the pair is now in consolidation and what we should be awaiting is a breakout for either a reversal or consolidation. This could happen in a matter of weeks or even months. If a reversal is in place then the next figure could be the resistance level. If we break our support and continue the trend down and if the lows of 1985 are in sight, then we would see prices at 1.0500.

Unlike the experts on the radio, I am not going to make any predictions. However, I will say if we want to know what is going to happen we will all just have to be patient!

Good trading.

Javid Shaik
Forex Analyst

Review of Cable.

Good morning Dynamic Traders,

Due to the blogger nor updating yesterday I could not post, and it will not upload my charts today and so I would like to give a review of the Cable trade mentioned on Wednesday.

The physcological level and figure was spiked yesterday with a doji candle with a high of 1.5068, and today has moved southward.

If you did not manage to enter this trade do not chase it but instead be patient to get another appropriate entry in the future should that situation arise.

These areas you all know from your mentoring classes and webinars with 'The Dynamic Trader' so call upon your acquired knowledge to assess those points.

Good luck with your trading.

Clayton Farnworth.

The Cable Tightening.

Good morning Dynamic Traders,

One to keep a close eye on again is the GBPUSD on the daily timeframe.

Price action is again approaching the physcological level and figure of 1.5000 where it has seen resistance in the recent past.

The sub chart indicator is showing divergence implying a possible reversal may be coming and so it may well move into a position for a possible trade.

The long term trendline has been broken which you can apply yourselves and this could now offer support should a fall evolve.
I am awaiting the outcome of the squeeze first ( which could run till the end of April at its extreme ), before entering any trade and shall have the consolidation zone in mind whilst thinking of any trade.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.

Perhaps 123 on Cable again?

Good morning Dynamic Traders,

Today I am awaiting confimation of a possible 123 setup on the GBPUSD four hour timeframe.

As you will see I have put some divergence points on the image below, together with a note about the proximity to the figure.
I am going to monitor this currency pair off my lower timeframes and have already got an entry point and a pre determined SL in mind should I enter.

Price is at other confluences for this type of set-up and so depending on your trading plan you may wish to act accordingly, and whilst doing your own analysis you can also check what the higher timeframe is up to.

Charts courtesy of AdvancedGet.

Have fun with your trading.

Clayton Farnworth.

Intra Day Pound.

Good afternoon Dynamic Traders,

Today chart on the 4 hour timeframe is of the GBPUSD.

I am looking for this to come to an end in its current upward move be it shorter term or otherwise, and therefore either retrace or consolidate.

The RSI is showing overbought, and the price action is approaching the figure again at former resistance.
The higher term trend is still down whilst shorter term it is in an uptrend which is what we are seeing at the moment.

AdvancedGet is showing the MOB above the figure and so a retracement before the next assault may well be what is going to happen.

The short trade could well produce good gains but would have to be managed well, but a retrace may also be waited for before the possible continuation, which could be traded using ESLT should it come about.

As always please do your own analysis.

Charts courtesy of AdvancedGet.

Enjoy your analysis and trading.

Clayton Farnworth.
FX Technical Trader.

Cable 123 re-visited.

Good morning Dynamic Traders,

Today I want to assess yesterdays chart of the GBPUSD.

As mentioned I was looking at trading the possible 123 set up which did come about but ran into a DT.
I entered this trade but was running for a loss for quite some time which wass not my intention.
However as I did commit at an intermediate aggressive level I decided to let it run as I had my stops in place.

After getting up this morning I was able to lock in small profits, but this was what I had intended to do at an earlier stage.

Now being as I am in the trade I shall let it run although today is big news day and shall await the outcome.

Charts courtesy of AdvancedGet.

Have a great weekend.

Clayton Farnworth.

Perhaps 123 on Cable?

Good morning Dynamic Traders,

This morning I am posting a lower timeframe possible trade developing.
There is time for anyone to do their own analysis on this before it gets to the 123 scenario to assess it in plenty of time.

As can be seen from the image below we have all the classic signals for a short trade to be taken should the remaining confluences come together.
At the moment, just wait for the final pieces to fall into place before triggering your trade, as we all know the market will do what it wants and so wait until your risk is minimised.
Keep an eye on this pair with the high impact news out the rest of the remaining trading week, and at the appropriate time use your lower timeframes.

Charts courtesy of AdvancedGet.

Enjoy your trading.

Clayton Farnworth.

The Cable.

Good evening Dynamic Traders,

May I take this opportunity to thank our Mentors for perservering with me on my up and down journey in Forex trading and for Javid's extremely kind words on the sister blog relating to me becoming a full time trader which has been an obsession and ambition of mine for many years which has only been made possible through 'The Dynamic Trader', thank-you guys, truely, very, very much appreciated.

Tonights chart on the daily timeframe, and looking for a swing trade opportunity is the GBPUSD, which I am keeping on my watchlist.

As can be seen from the chart below, it has been heavily in a downtrend but is showing signs of it possibly running out of steam which may present a long trade opportunity should the confluences show themselves, and if not then a continuation down could be the order, either way we should all be ready.

You will notice that we have had a possible 123 which if traded as such would have given a good pip profit, but as I did not swing trade this but have entered previously intra day I am now looking for a good entry without 'chasing the trade', and therfore am planning my entry.

There is currently a squeeze formation happening which is restricted to the upside by the trendline and to the downside by former resistance and a trendline.
Todays price action has produced a spinning top (although not finished) and RSI is still below fifty.

The lower timeframe is showing a likely pullback at least and therefore I am going to wait for direction albeit I am second guessing my swing trade direction.

Whichever direction it does take we should all be ready to trade this with the rules learnt from our webinar/mentoring classes.

As always please do your own analysis before taking any trades.

Charts courtesy of TradeStation.

Good luck to you all with your trading endeavours.

Clayton Farnworth.