Currency market: GBP/USD vs GBP/CHF and EUR/USD
GB/USD opened the week at 1.1176 and GBP/CHF at 1.1232 or 56 pips. The spread from overnight trading compressed to right at 10 pips at GBP/USD 1.1273 and GBP/CHF at 1.1283.
GBP/USD Big break for the week is located at 1.1326 then 1.1400's and GBP/CHF 1.1311. GBP/CHF at 1.1311 is far more important than GBP/USD 1.1326 as 1.1311 signifies GBP/CHF trades much higher and GBP/USD follows.
GBP/USD for today must clear 2 hurdles: 1.1260 and 1.1280. Above 1.1280 targets maximum level at 1.1336.
GBP/USD 1.1336 and 1.1326 then operate as a brick wall and short is the only trade. Below targets 1.1224, 1.1231 and 1.1238 then long again. Most vital is GBP/CHF bottom today at 1.1241.
Watch GBP/USD at the GBP/CHF bottom at 1.1241.
Note GBP/USD and GBP/CHF last on the GBP weekly trade rankings as follows: GBP/JPY, GBP/AUD, GBP/NZD, GBP/USD, GBP/CHF, GBP/CAD.
Easy trades and easy money achieve high on the list rather than struggle through the GBP/USD and GBP/CHF dilemma. Far better trades exist although GBP/USD and GBP/CHF contain both daily and weekly trades.
Shorts all week to GBP/JPY, GBP/AUD and GBP/NZD.
Highlighted GBP as a mix match of exchange rates are rare days seen in markets. Remember USD/CAD Vs EUR/JPY or USD/CAD Vs EUR/CAD. Today its CHF.
Remainder currency rankings: EUR/USD, EUR/JPY, AUD/USD, EUR/AUD, NZD/USD, USD/CAD, EUR/CAD, EUR/NZD, USD/JPY, AUD/CHF, NZD/CHF, CAD/CHF, CAD/JPY, AUD/JPY, NZD/JPY.
Best from the overall: EUR/USD, EUR/JPY, AUD/USD, EUR/AUD, NZD/USD, USD/CAD, EUR/CAD, EUR/NZD, USD/JPY, AUD/CHF.
EUR/USD weekly
Long 0.9665 and 0.9661 to target 0.9772. Entry lies just above 0.9586.
EUR/USD Bottom today is located at 0.9692, 0.9699 and 0.9716. Long at the lows for quick pips today but weekly trade entry won't be seen.
The ECB at 10 am may push EUR a few pips lower however not enough for trade entry.
ECB at 10 is becoming more and more irrelevant to day trading as well as the 11 am London FIX which means currency markets are changing yet again to the next phase.
Author
Brian Twomey
Brian's Investment
Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.
