27/02/2014: I have just SOLD GBP/USD @ $1.66690

As with the Dollar/Yen trade, I believe that this bounce today is just back into resistance and that it has given another chance to sell for the retreat which I believe is coming back towards $1.6603 once more.

There is a downtrend intact from the high at $1.6726, while the falling 200 hour is also the basis of resistance at $1.6670, with a reaction high from yesterday at $1.6683

I have placed my stop at $1.67050 (36 pips) which is above the reaction high at $1.67010.

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  1. Hello.
    Ive got no comment to this but could you explain to me why the GBP/YEN have a tendency to make bigger moves than other pairs not just the absolute value but percentually also.
    Sometimes its like the pair moves sort of crazy and after a while the same crazy way the other direction.
    Its like there are no major stops or supports.
    A pair that in my opinion is the contryary even there is yen involved is USD/YEN.
    Its seems unwilling to make big moves.
    Whats your opinion of this reflection?

  2. I have not traded Sterling/Yen too often so I have not got a great deal of experience of the sharp moves going against me. I would say though that with Dollar/Yen being a major currency pair, and Sterling Yen being a Cross there will be significantly more volume going through Dollar/Yen and therefore the moves on Sterling/Yen may be more volatile as a result. If there are less players in that market then this will impact on the price movement which could be far more sharp, and hence your observation of the “crazy” price action.

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