October Focus: Pound Sterling against Australian Dollar?

With current crazy media coverage and emotion-based fundamental news regarding USD and CNY going crazy, it is obvious where short-term/day traders will head on to speculate in search for quick riches. And by just doing the opposite, searching for trending instead of liquid currencies, you’ll be in-the-money pretty effortlessly for some pretty while. 🙂

 

As an update to my previous technical analysis on August of the hot currencies (AUD, CNY & XAU), I present this mid-long term possible trade to carry for the next couple of months.

GBPAUD, WEEKLY CHART

gbpaud

You might be wondering why I trade exotics despite the lower liquidity and high spread. The truth be told, being an educated trend trader, it really does not matter if you enter a trade at the start of a trend or in the middle because as long as you are right, you win. And which in this case, it’ll be almost always since you’re going along well with your pig-headed friend (a.k.a. The Trend). Hence a little bad price execution and spread will most likely be nothing compared to the amount you’re going to take from the trillion-dollar market, isn’t it?

Back with the chart saved on last Sunday, the closing price hovered around the previous low of the up-trend where I drew a horizontal support line. Actually in fact, it has breached the level and formed a lower low as of last week. This clearly shows that bear is slowly gaining the upper hand and educated trend traders will guess that this is the start of a down-trend for months to come. Conservative ones will wait for this week’s closing before entering while a little riskier ones will enter around this time now.

Nonetheless, as drawn in the chart, there are two very very strong up-trend supports from the recent rally which the bear has to break before it is considered a ‘long-term bear’. And I doubt it will, which made me stated above that this will likely be a mid-long term opportunity.

In conclusion, this will most likely be a very good example of how trend traders trade a trend reversal. 😀

Stay curious, always learning!

Regards,
The Independent Abecedarian

As always, all ideas should not be construed as an enticement to buy or sell the financial instruments mentioned, and that there is no guarantee of profit of sort.

 

P.S. To add on, We’ve hit 500,000 unique hits before Year 2015 could end! Yay! You guys are just too awesome!  😆  😀

500,000 unique hits on our Blog!

What’s this again! We have hit 500,000 hits! Yay!

Thank you for all your support in The Independent Abecedarian Blog! Although everything in life is possible, this milestone will never be possible without you guys!

Please continue support TheIA as things will get even more interesting and better now onwards! I promise!

And together, let’s pick up the speed towards a wealthy and a rich life!

Regards,
The Independent Abecedarian

Posted by The Independent Abecedarian on Tuesday, October 13, 2015

 

 

 

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3 thoughts on “October Focus: Pound Sterling against Australian Dollar?

  1. Hey IA, just a quick question – The forms as well as the FAQ on OANDA seem to state that the minimum age for the Asia Pacific Division is 21; is the info simply outdated or are there different rules for upgrading from a demo account? Fellow NSF here btw – I’ve been playing with the demo for a couple of months, and am considering putting a little bit of cash into Live to supplement the small allowance that we get haha.

    1. Hi John, good question.
      You are right. For Oanda, demo account does not require any legit information (you can fill in anything you want) and there’s no need to deposit or commit to anything. However for the actual live account, because leveraged FOREX is considered a Specified Investment Product (SIP) by our Monetary Authority of Singapore (MAS), Singaporeans are required to be at least 21 years of age to open an account. An option is to ask for someone (older siblings or family for that matter) to open the an account under their name and let you manage it using the MT4 software/app. Or you can try this another Australian brokerage a couple of the traders in my circle is using and recommending – AXITRADER.
      I hope this answers your question. Contact me if you have any sensitive questions you’d like to ask. I’ll be glad to help out a fellow enlistee! 😀
      Regards,
      The IA

  2. The value of black gold has surged in recent weeks, bolstering the Canadian Dollar s appeal and helping the currency move away from previous multi-year lows against peers like the Pound and US Dollar.

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