Gbp/Usd Weekly Forex Update

Our cable pair has continued its descent down with a nice bounce from the 1.5727 level on Thursday making it a nice short trade working off the 200 SMA.  On Friday, we've seen allot of manipulation from the maker makers pushing the market from the 1.5661 level up to 1.5687 and pushing the market down to 1.5654 to squeeze the market some and ultimately take out the Longs and pick up some cash from the traders.  Than reversing the direction and heading back up to our high point of resistance for the day at 1.5700.

Our real mover for this Friday was Eur/Usd with heading down to 1.2495 for a nice move at 105pips.
With our Gbp/Usd pair only moving 68 pips to its support level at 1.5632.  If we can stay below the 200 Moving Average I believe we're still looking bearish for the Gbp/Usd.  Remember,  this is memorial day weekend, the majority of major banks are closed on Monday and I wouldn't advise any trading as your spreads could be insane.  Lastly,   look to this friday as June 1 and for Non-Farm Payroll news hitting the wire at 8.30 am EST.

 Be safe,  and Have a great holiday weekend!

Gbp/Usd Big Picture for the week ahead

The last 5 trading days we saw our Cable pair move in an average range of 116pips.  Breaking out of our 68-70pip range from last week and making a solid move to the downside.  We finished the week at 580pips of movement making the Gbp/Usd a good choice to trade among many investors. 

Once we broke the 1.60 level the Gbp has really begun its move down and there's no telling where this is going to go now that we've also broke the 1.5800 level.

Following the 200 day moving average has provided some key resistance even for today with a nice bounce off the 1.5844 level to the downside and some strong selling too.  This is setting up to be some nice shorts on the pair if we can stay below the 200 day SMA and continue down.   Have a great week!

Facebook IPO- Opening day Boom or Bust?

Well with lots of excitement and energy surrounding the Facebook IPO opening today it came with nice pop to the upside at around 11% but gradually loosing steam with shares closing at around $38.23 with the last half hour of everyone on their seat watching. 

Most investors and economist were really hoping for a bigger boom like something to the tune of shares rising 30-50% from the opening, but that simple did not happen, and left allot of room to disappoint concerning the real value of Facebook.

I know the singer Bono doesn't feel this way ever since he owns a 2.3% stake in the company since 2009 and with todays real world value that puts him around $1.5 Billion- 16 times his initial $90 Million investment.  Not a bad deal huh?
I guess only time will tell when the market gives a more accurate reflection of the value of Facebook and what investors are really Ok with paying for their share in the company.   And with a initial IPO price that's more than 100 times historical earnings, compared with Apple 14 times and Google 19 times it leaves you with a bad taste in your mouth and the thought was this too risky of a bet to take?

But only time will tell and numbers don't lie-  so lets wait and see!

have a great weekend everyone and relax.

GBP/USD Past 5 day daily range

Well we saw a nice move on the GBP/USD today.  The Eur/Usd was really the better mover in terms of pips but considering when we look at the last 5 day Daily Range on GBP/USD averaging about 70 pips a day its nice to see the move today at over 100 pips and a nice move to the down side. 

The Gbp has been holding pretty firm as the Euro has weakened and now we're seeing the majority of cash flow back into our safe haven in the almighty "US Dollar".    But because this is happening we've also seen commodities take hit and now Gold sitting at $1542.2 down -0.957% for today.  There is still much to unfold in the Euro zone and with Greece leaving the Euro and even what may happen to the Euro altogether is still up in the air.