Currency market: GBP/USD day trade and analysis
|The central banks in 1972 created the first-ever free float trading by pure interest rates which means a currency and market price were backed by an interest rate. A free float interest rate to free-float market prices. Previous 50 year periods since the BOE in 1694 traded by Gold and Silver standards but never by interest rates. The current 50 year period by interest rate trading was the first-ever experiment.
Once markets figured how an interest rate would trade to bid and ask prices, ranges, entries and exits then the day trades began around 1972. See the academic papers for more.
The exact same-day trade system trades today as it did in 1972. and its central bank created. The central banks as the Drs of market destruction began playing with the concept of overnight rates to maturities in 2014 to prevent price movements with much success.
The day trade system is a special MA system since 1972 but created and factored for day trades.
GBP/USD
GBP/USD closed and opened Sunday night at 1.3386. From the 5:00 pm open to China 8:30 pm, GBP/USD traded 28 pips from 1.3385 to 1.3413. GBP/USD traded an hourly average of 8 pips and within its deviation.
Why 28 pips in 3 1/2 hours of trade is because Sunday night opens trades Friday prices as markets don't officially open for the week until China reports currency prices. Sunday open is the only time during the week when a currency price trades in the past. Once China reports then begins the forward price to forecast future prices.
Friday prices traded to Sunday opens is a nasty time to trade. Friday prices operate on fed prices but from 12:30 Fed. Then comes 4:15 when the Fed reports interest rates. From 12:30 to 4:15 operates on 1 set of interest rates then 4:15 comes to re-factor GBP/USD to last from 4:15 to the 5:00 pm close.
GBP/USD 4:15 pm Friday to the 5pm close.
Long Short Line 1.3401.
Most Important 1.3353, 1.3368, 1.3384 Vs 1.3409, 1.3418, 1.3435, 1.3443, 1.3452, 1.3461 and 1.3469.
Bottom 1.3333 achieves by 1.3367 and 1.3351.
Up Target 1.3469.
Continuation 1.3435.
Note 1.3384 and the close at 1.3386. Note Sunday night 5 pm to 8:30 pm trade from 1.3385 to 1.3413. To know Friday prices is to profit for 3 1/2 trade hours at the Sunday open. To not know Friday prices is to guess and speculate.
GBP/USD China to American Market Trade 8:30 pm to 1:30 am.
Long Short Line 1.3408.
Most Important 1.3360 and 1.3375 Vs 1.3416, 1.3425, 1.3433, 1.3442, 1.3459, 1.3467 and 1.3476.
Bottom 1.3340 achieves by 1.3374 and 1.3357.
Upper target 13476.
Continuation Fail 1.3442.
Note bottom supports Friday 1.3353 and 1.3368 Vs Asia 1.3360 and 1.3375. Big difference. Supports change and an imperative to know the changes. Note the close at 1.3386. No mysteries.
8:30 pm to 9:00 pm = 1.3406 to 1.3413 or 7 pips.
9:00 pm to 10:00 = 1.3408 to 1.3411 or 3 pips.
10 :00 pm to 11 pm = 1.3409 to 1.3414 or 5 pips.
11:00 to 12::00 = 1.3411 to 1.3419 or 8 pips.
12 :00 to 1:00 am = 1.3415 to 1.3425 or 10 pips.
1:00 am to 1:30 = 1.3415 to 1.3425.
Asia trade results
GBP/USD 5 hours of trade 1.3406 to 1.3425 or 19 pips. An average of 1.3415 inside a 9 pip deviation. GBP/USD traded 2 deviations. GBP/USD average per hour 3.8 pips.
For Asia, only 1 trade existed for 17 pips. The joke on traders is GBP/USD traded in neutrality without a significant trade.
GBP/USD and Fibonacci
GBP/USD 3/8 Fibonacci = 25 pips and 7/8 Fibonacci = 59 pips. Fibonacci 61.8 = 42 pips. Current Fibonacci pips are written in day trade mathematical stone and doesn't change. Fibonacci day traders for Asia earned nothing.
American Market Day Trade 1:30 am to 9:00 am.
Nothing exists to GBP economic news. Only valued news in Europe and 2nd tiered Chicago PMI for US trade which won't move GBP/USD.
Long Short Line 1.3421.
Most Important 1.3373 and 1.3388 Vs 1.3429, 1.3438, 1.3446, 1.3455, 1.3472, 1.3481 and 1.3489.
Bottom 1.3353 achieves 1.3387 and 1.3371.
Upper target 1.3489.
Continuation Fail 1.3455.
Note bottom supports 1.3373 and 1.3388 from Asia 1.3360 and 1.3375. Pips matter for perfect entries and exists as no pips trade anymore.
1:30 am to 2:00 am = 1.3420 to 1.3425 or 5 pips.
2:00 am to 3:00 am = 1.3414 to 1.3434 or 20 pips.
3:00 am to 4:00 am = 1.3428 to 1.3443 or 15 pips.
4:00 am to 5:00 am.
GBP/USD range 1.3414 to 1.3443 or 29 pips and 19 pips for Asia. So far, an 11 pip per hour average.
So far, only 1 trade existed for 22 pips.
Total so far, 1.3386 to 1.3443 or 57 pips in 8 1/2 hours of trade since China or an hourly average of 6.70 pips.
For Asia and current American trading, total profit 41 pips on a total range of 57 pips.
Once Asia trade stops, Asia prices no longer count. Once 9:00 am hits and the day trade stops, the prices no longer count. A market price is forward but never backwards and don't ever look backwards.
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