As you would have guessed that I’m a technical trader, but I could not stop myself from posting the critical events that happened the past week causing this frenzy. As the quote from our respected blogger goes, “For a trader, it is important to keep abreast with the latest financial and market news” 😉
Critical Events last week
First the Fed meeting regarding the changes in its interest rates, second is the conclusion of the referendum on independence in Scotland, UK, and third being the news of the fall in UK’s inflation.
So now what? There are no big changes with current Fed interest rates, the United Kingdom is remaining united, and its inflation drop is as everyone has predicted. It’s time to get back into the charts then!
The Cable (GBPUSD pair)
From what you see above as a continuation of my previous update last month, The Cable has rode over the corrective waves abc where wave c has exactly hitted the key Fibonacci level of 78.6 at the perfect timing of candle bar closing. Following that, the impulsive Wave 1 immediately dived right in from there without hesitating.
What might happen next week is the continuation of impulsive waves streak, where The Cable is expected to rebound from current price back till 61.8 golden ratio level. And once this move is confirmed, it will be the golden opportunity to short sell GBPUSD, riding its largest impulsive wave 3 of the down trend.
I’ld expect a 25-35% Return on Overall Capital (ROC) with this trade lasting 1-2 weeks with a mere 5% capital risk. Do note that the return and risk is of the overall capital in the account and not specific invested capital for the trade.
Singapore bloggers experiences with Forex
On the other hand, I will be starting to look around our local finance blog community in search of some Singaporeans with personal experiences or thoughts regarding the trading of the Foreign Exchange Market as I am sure my readers are just as curious as I do!
Interested parties can contact me today onwards to be in the list while I craft out the Questions and guidelines! 🙂
The Independent Abecedarian
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