GBP smells bad, really really (but hey) really bad…

I believe that banking institutions are more dangerous to our liberties than standing armies.
Thomas Jefferson (1743 – 1826)

The GBP is marching higher against the other major peers this January (bar the USD, for other -and to some, obvious- reasons, and the CHF after its ‘shocking event’), in what -in my Model’s own terms- is a serious price aberration that may be anticipating something of a larger scale just lurking in the shadows. It is, the other 2 majors aside, the best performing major by some distance and has even managed to curb losses against the ‘almighty’ USD. Something’s fishy.

GBP/NZD hits 2.08 from 1.9250 (ie, 1,550 pips up +8%); GBP/AUD hits 1.9425 off 1.84 lows (1,000+ pips up +5.5%); GBP/CAD hits 1.90 off 1.7750 (1,250 pips up +7%); and EUR/GBP hits 0.74 off 0.7850 (450 pips down +6%). Not bad for a couple of weeks of actual trading (it’s only January, you stupid!).

Let’s talk about it, shall we?

Audible posts

Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants.
Benjamin Franklin

Posts will be in audio format from now on thanks to Chirbit.com. This will allow for more and more regular posting.

First audio is a test for the Trade2win.com forums (where I’m active in the Forex one), talking about the CHF thing of the past and its meaning for small traders. Click the icon below to listen to it. I hope you find it useful.

FX View: EUR/USD (+)

A handful of patience is worth more than a bushel of brains.
Dutch Proverb

I promise I’ll be back shortly with an in-depth view of the ‘party’ we all who participate in the FX market witnessed last week, but time is of essence at the moment, so I’ll go right to the point:

I’m buying EUR/USD @ 1.1550, stop on a close below 1.14, target 1.2050

Unlike the previous “attempt” (let’s call it that way…) in the low 1.19s, I’m taking this long scenario position with normal volume, and the target suits technical viewers as well, as we have a gap to close around that level, haven’t we?

Also, at current levels in the high 1.81s, you may want to consider buying GBP/CAD, stop on a close above 1.8350, target 1.75 again (we got trail-stopped out on our previous shorts, though prices did hit sub-1.78).

A must-watch documentary

“The bank hath benefit of interest on all moneys which it creates out of nothing.” William Paterson, founder of the Bank of England in 1694, then a privately owned bank

LINK: http://letitbit.net/download/27701.254b8c44e847dbf9d0f7cd434245/Princes_of_the_Yen-_Central_Banks_and_the_Transformation_of_the_Economy.avi.html

This is one of those videos that SHOULD go viral; unfortunately, it has to be promoted like hell just to get a fair amount of clicks and views. I am leaning towards the macabre thought that ‘we’ as human beings like to be treated with disrespect and humiliated, work as slaves for no major purpose at all…..and all in the name of a supposed ‘freedom’.

I’ve known and followed professor Richard Werner for a while now. He is one of those rare people that go outspokenly against the ‘mass media control’ tide and isn’t afraid of doing so time and again. He’s been advocating on monetary reform for quite a while now, and it is thanks to other names such as Bill Still (https://www.youtube.com/watch?v=0LVfmpv71TQ) and Mike Montagne (Mathematically Perfected Economy https://www.youtube.com/watch?v=LBoVSl9Kpyk), that more and more people are growing conscious each day of what the real quest for human freedom is in the long run.

I know. The topic isn’t sexy and it doesn’t have a pair of big boobs to lure you into it; however, you’ll be damned if you don’t play your part (no matter how insignificant you may think it is) in trying to change the current course of action. It’s also just as good not to do it, if you only care for provising for your family and trying to stay aflota; for going out of the real matrix and against the real established system is very hard, no money for that purpose; thankfully, we’ve got the internet to compensate, and divulging the info, as well as getting educated, is as vital a part as getting ready to fight the establishment if needed.

FX View: Long-term GBP/CAD (+ GBP/NZD)

The following calls are based on long-term chart scenarios that have just received their entry signals. We had taken a long GBP/NZD late last week here in this blog; that trade rose overnight quite some distance, and with a different long-term signal appearing (prevailing), either that or just the trailing stop mentioned when the cross would hit above the 2 mark, should be enough to keep you at least flat there. We have a long-term SHORT setup in the pair above 2, stop above 2.2, target 1.75. These are perhaps too wide ranges for you to consider trading, thus I’m just letting you know of it, we’ll focuse on the other pair.

I’m a seller and have been selling  GBP/CAD in the mid 1.80XXs, will add more @ 1.82, 1.83 and 1.85, will take a stop-loss on the full scenario above recent highs, and have set-up a take-profit area starting @ 1.75. The price action dynamics in this pair have been acting wonky to say the least for the last couple of months; if it gets back to normal, we should be seeing some very decent correction there.

FX View: GBP/NZD long trade

I’m buying GBP/NZD here in the very low 1.99’s, may consider 1.9835-45 for more, stop on a close sub-1.9790, target 2.0120-50. Cover with a trailing stop on a move back above 2.

Nice GBP dive today following the pre-new year spike on the 31st, which made it a valuable gift for those of us holding some GBP shorts (my first target in GBP/AUD @ 1.8935 has already been met). However, in the cross which concerns us in this post, the downmove has been extended by quite some distance; and thus, such price action dynamics has triggered a signal from my model. With this trade, I’m also implying that I see value in going long EUR/GBP and AUD/NZD, as these two crosses should favor both EUR and AUD this time, ceasing to be the laggard currencies for now. I don’t have specific signals there, but it is a conclusion that I take from the recent market moves.