ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The British pound
(This is an excerpt from an article I originally published on Seeking Alpha on July 29, 2012. Click here to read the entire piece.) I started with a bullish strategy to trade the British pound against the U.S. dollar (FXB) after fiscal and monetary authorities rallied to airlift more liquidity into the economy. It worked … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 13, 2012. Click here to read the entire piece.) After another pins and needles rally back to the 50DMA resistance, I think it is time to switch to a more bearish strategy on the British pound (FXB). Since mid-June, I … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 19, 2012. Click here to read the entire piece.) In “British Pound Surges Into Resistance – Buy Dips As Government and Bank of England Try To Ease Credit Crunch” on June 15th I argued that it is time to buy … Read more
The pound continues to flunk the test of a safe haven currency. Both the yen and the U.S. dollar have been soundly beating out the currency for the entire month of May – for example, CurrencyShares British Pound Sterling Trust (FXB). Those beatings have accelerated along with the worsening crisis in the eurozone. The chart … Read more
On Tuesday (February 28), the British pound finally broke out against the U.S. dollar with a resounding surge above its 200-day moving average (200DMA). The struggle to break this resistance lasted the entire month of February. Despite this technical breakthrough, I remain skeptical that the British pound will deliver much follow-through before faltering again. Indeed, … Read more