FOREX ALERT: Sterling moves over $1.50 ... you know what to do.

Posted on by The INO.com Team

Today Sterling moved over the key 1.50 level in interbank trading. We have been waiting for this to happen (see our video).

It appears that this market is headed higher against the dollar.

Watch this video again for target levels.

Adam Hewison

President, INO.com
Co-creator, MarketClub

17 thoughts on “FOREX ALERT: Sterling moves over $1.50 ... you know what to do.”

  1. To Han who lost a couple thousand dollars. Never ever trade without stops otherwise you will go bankrupt. No one however good is perfect and there will always be losers. Learn trading from the basics, don't blindly follow advice, always use stops, learn proper money management and don't try and predict any market beyond a few pips, but let the market tell you what is happening. Treat trading as a serious business and be prepared to work at it. if you have not traded before open a demo account with one of the brokers and trial the ideas here for a month and see what happens.

    Han, never hold on to a major loser in the hope that it will rise. No one knows where the market will go and you should mange trades with stops. If you expect a trade to go one way and it goes another get out with as small a loss as possible and wait for the next chance.

  2. I do not know why Mr. Han made that purchase for. If for trading, he should have watched the trend of the market very very closely. Now he has to wait patiently. Isn't that correct Adam?

  4. Hi Adam...I am an Ino affiliate, a big fan of yours, and of course, trade triangles. Now, a couple of my blog posts have talked about the two breakouts you did videos on recently...the first one being the Sterling/Greenback and, about a week ago, the Greenback/Yen.

    Now, in both, the videos that I showed my readers both featured breakouts...neither of which look like they are going to happen any time soon. So, in your opinion, when is the breakout a breakout, and when is it not. Your case for 103-105 for the US/Yen was extremely compelling when you made the video.

    Brad

    1. Brad,

      Thanks for your feedback and your kind comments.

      Both trades were breakouts in my opinion. Neither trade has been successful so far.

      Both markets are on the defensive right now. On a positive note Sterling did close higher for the week while the dollar closed lower against the Yen. Providing the 96 yen level holds I continue to favor the Dollar over the Yen.

      All the best,

      Adam

    1. Adrian,

      Providing our weekly Trade Triangle is positive I would prefer to be on the long side of Sterling.

      Thanks,
      Adam

  6. Dear Adam,

    Price of Gbpusd went to 1.5060, then down strongly. It was rejected by strong resistance around 1.4950 - 1.4980 where Cable visited and re-visted 4 times before it went above 1.5000.

    But now, it is trading quite low at 1.4754 (lowest for today). I wonder if 1.4700 can hold or not next week. If this support can not hold, Cable may fall down to 1.4550 level soon. How do you think?

    With strong bearish candlestick patterns on daily chart today, do you think or expect Cable can go above 1.5000 level again next week?

    I hope you can share your ideas on Cable on next week movement soon.

    Best regards,
    James

    1. James,

      While Sterling reversed from the 1.50 zone it did close higher for the week which I consider a positive. I expect that we will begin to see some consolidation around current levels.

      Our original buy signal on our weekly Trade Triangle was at 1.4598. I still consider that signal to be valid.

      All the best,

      Adam

  7. Dear Adam,

    After listening to your video on Gbpusd, I waited for it to go above 1.5000 level as you explained, and made a buy at 1.5020 to be sure it is above 1.5000.

    However, Gbpusd went to 1.5066 and made a TOP at this level, then, down very strongly since then.

    Today, it made a low at 1.4755 on my broker, and still trading at 1.4783.

    Since after making a TOP at 1.5066, Gbpusd was down quickly, and from yesterday to now, it could not go to 1.4950 (today, it went to 1.4940 as highest). Gbpusd seems to try to go lower to 1.4700 level.

    Because in your video, you did not tell where to put the stop loss, I did not use any stop loss at all.

    Now, I am in a big loss of 234 pips for 1 lot size.

    Could you please kindly check the chart of Gbpusd and advise me if Gbpusd still can go up above 1.5000 level or it will start to go down to 1.45000 as many traders on some forex forums told ?

    What should I do with my current trade with 234 pips loss now? Should I close it now for this loss, or wait for it to go above 1.5000 level again? When do you think or expect it to go above 1.5000 level again?

    On the Daily chart, today is a strong downward Daily candlestick, and if it is like this, the Candlestick pattern will form a DARK CLOUD COVER (today, yesterday, and the day before yesterday), which means a FURTHER STRONG DOWNWARD TREND IS EXPECTED TO HAPPEN NEXT WEEK.

    I am now really very confused and don't know what to do with my current trade. It's a big loss of 234 pips, and I really don't want to close it with such a big loss of USD2,340.

    I am very thankful to your further information and explanations soon.

    Best regards,
    Han

    1. Han,

      This was a bit of a disappointment as Sterling did move over 1.5000 but reversed the next day to the downside. Right now our Trade Triangle technology is neutral on the market. The pullback last Friday has reached what we expect to be a Fibonacci support zone of 62%.

      Another positive was that Sterling closed higher for the week. Now to address the loss issue. Taking losses is part of trading and you need to establish how you are going to address them. See what I say on stops here:

      http://club.ino.com/trading/2009/02/how-to-effectively-use-stops-to-lock-in-profits-new-video/

      All the best
      Adam

  8. I'll keep an eye on it. However, it just formed a head and shoulders pattern on a 1 month chart (1 hour candlesticks). I might pick some up when it breaks back over 1.50.

  10. Adam,

    Thanks for the up date. I've been watching this market since last week and I've made good trades and I'm still counting the pips.

    MarketClub is TOOLS FOR THE TRADER indeed.

    Keep the good work.

    Shirwa

  11. Still not convinced. Chinas GDR tomorrow and GBs budget could easily reverse this one. Plus if deflation persists the brit economy is going to get worse and drag sterling down with it.

Comments are closed.