Forex Marketz Daily Forex News – Fully Markets Update
The GBP/USD continues its bearish plunge. A tunnel to America might boost the valuation of the GBP/USD right now. No, there is no tunnel planned.
Looking at the daily chart:
We see that the Sterling has lost ground since July 6 when it was at a high of 1.71420. It is now trading at around 1.571. That is a devaluation of 10%! How long can it continue or travel down into the depths of Atlantic Ocean? Let’s refer to the weekly chart:
Between June and August of 2013, the Pound was trading also at lows of 1.4856. This is likely the bottom of the ocean for the currency as we see from the chart. Now refer to the 15 minute chart:
Clearly, this chart is very short term but it offers an insight into changing or emerging patterns. Traders should notice that the Sterling is trading consistently in the bottom of the bollinger bands. As the currency reaches bottom we could expect to see the bands narrowing and ultimately the trading pressure to move up above the top of the bollinger bands. Meanwhile, the investor could expect the currency to continue the downward trend until the potential of 1.48-1.49. This would mean another reduction of up to 5% in valuation. For a trader that 5% could translate to 500% on a margined account. Be cautious but assertive in these cyclical times and maximize your profits!
