We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Japan’s All Industry Activity Index (MoM) (AUG) Actual: 0.0% Est: 0.1% Previous: 0.2% #JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.04%, while traders in Germany 30 are at opposite extremes with 78.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cCfWKn4CzA
  • (ASEAN Fundamental Forecast) US Dollar Outlook: MYR, SGD May Fall on CPI. Rupiah to Drop on Cut? #USD $USDMYR $USDSGD $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/21/US-Dollar-Outlook-MYR-SGD-May-Fall-on-CPI-Rupiah-to-Drop-on-Cut.html?CHID=9&QPID=917702 https://t.co/3u9AfXqbeN
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.22% 🇦🇺AUD: 0.10% 🇨🇦CAD: -0.03% 🇯🇵JPY: -0.10% 🇨🇭CHF: -0.14% 🇬🇧GBP: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZjiVEE5Iuw
  • Heads up: Japan’s All Industry Activity Index (MoM) (AUG) is due at 4:30 GMT (15 min) Est: 0.1% Previous: 0.2% #JPY
  • Heads Up:🇯🇵 JPY All Industry Activity Index (MoM) (AUG) due at 04:30 GMT (15min), Actual: N/A Expected: 0.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2019-10-21
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.36% Wall Street: 0.31% France 40: 0.26% Germany 30: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2lBu42B9fy
  • Over the past 30 days, #Ghana Cedi, #Egyptian Pound and #Kenyan Shilling have been the best performing African currencies vs #USD with 0.85%, 0.67% and 0.17% spot returns respectively
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/m2sMVRiVef
  • LIVE NOW: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
Strong & Weak: Pound Sterling Continues to Shine

Strong & Weak: Pound Sterling Continues to Shine

2013-12-11 04:18:00
Jeremy Wagner, CEWA-M, Senior Strategist
Share:

Talking Points:

-British Pound has been the best performer over the past 5 weeks

-GBP to USD pair showing an extreme SSI reading suggesting further gain for Pound

-Buy British Pound Currency Basket (enroll for demo account at the same link)

The British Pound has been in a broad based rally for more than 5 weeks now and is located near the top of this week’s strong and weak analysis. We first highlighted the Sterling strength 2 weeks ago as the British Pound Outperforms.

Forex Strategy: Matching Strong versus Weak

Currency

Up Arrows

Down Arrows

Change From Last Report

CHF

7

0

Higher 1 ranking

GBP

6

1

Lower 1 ranking

EUR

4

2

No Change

NZD

4

2

Higher 3 rankings

USD

3

4

Lower 2 ranking

CAD

2

5

Lower 1 rankings

AUD

1

6

Higher 1 ranking

JPY

0

7

Lower 1 ranking

Chart created by DailyFX EDU Robert Warensjo

We will continue to hold the GBP Buy Basket trade open for another 1% gain (without leverage) or until Christmas. The reason for the time stop of December 25 is because December is generally a strong month for Sterling gains and January is one of the worst months. Since we have earned some nice gains so far and we don’t want to give them back. Therefore, if the basket doesn’t capture another 1% gain by Christmas, then we will close out the trade and move to a flat position over the holidays.

One factor behind the potential for additional gains in the Pound is FXCM’s Speculative Sentiment Index (SSI).

Forex Education: GBPUSD’s Sentiment Chart

Pound_Sterling_Continues_to_Shine_body_Picture_1.png, Strong & Weak: Pound Sterling Continues to Shine

Chart available inside DailyFX Plus and created by DailyFX’s David Rodriquez

The amount of sellers in the GBP to USD has steadily increased as the exchange rate increased from the 1.50 low in July. These sellers become a future supply of buyers when they decide to close out their trades. We will use this future supply of buyers as an opportunity to keep the Pound supported.

Executing the Trade

Since we anticipate the British Pound may continue its broad based rally we will take a diversified approach and buy the single currency against a basket of currencies. There are several advantages to trading a currency rather than a pair with the largest benefit being diversification.

You can try trading the GBP Basket BUY position in a Mirror account. You can even try this out in a practice account at the same link above.

Good luck with your trading!

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX Education

Follow me on Twitter at @JWagnerFXTrader.To be added to Jeremy’s e-mail distribution list, click HERE and select SUBSCRIBE then enter in your email information.

See Jeremy’s recent articles at his DailyFX Forex Educators Bio Page.

Looking to get started in FX trading? Take this New2FX course and learn about leverage. In the free course you will hear about the Traits of Successful traders.

Register here for the free 20 minute course to start your learning.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.