It’s Still Summer
- Posted by faithmight
- on August 19th, 2012
Vacation is over. Kids head back to school this week. It’s back to business. My family is excited for the routine to return. I’m sure traders are too. It’s been a slow-moving, rangebound market.
While vacation may be over, it is still summer. And the $GBPUSD has been rangebound all summer. It’s been a choppy range though. Channel traders who stuck through it profited very nicely. Showing the kids a good time this summer, I mostly watched from the sideline shaking my head. There were days that the market didn’t even move. There were days it moved 70 pips. $GBPUSD typically has an ATR of 150+ pips. In a trending market, cable can be a thing of beauty. But it is summer. And the long term downtrend has consolidated into a nice-looking channel.
But it takes trust to trade the channel. Given the state of the market right now, it’s hard to trust this market. But with several more weeks left of summer, there is little reason for $GBPUSD to move beyond 1.5800 to the upside and 1.5300 to the downside. As traders play the range, we take care not to get lulled by the lazy days of summer. Rather, sentiment is cautious. Will cable actually follow through on its range break? Because eventually the range will break. Until then, we trade what we see.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.comments powered by Disqus
Lydia Idem has been investing in equities for 16 years and actively trading currencies exclusively for 7 years. Her trading style is simple and short term. With a special feel for sterling, Lydia trades almost exclusively the GBPUSD and EURGBP. You can follow Lydia on Twitter and StockTwits... More »
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