Who prefers GBP/USD to EUR/USD for intraday trading, and why?

[4xpipcounter]

I don't want to seem obstinate, but I not only disagree with FX Scalper, I think he is dead wrong. If cable does not respect technical levels, then look at the attached chart. For 7 consecutive days it has rested nicely on top the daily kijun and the 50% level of the beginning yearly price and the YS1. Friday, it finally broke loose.
If it does not respect technical levels, then why is it money in the bank that it is headed to 1.5278?
Cable got the bounce from the drop on Friday at my WS1 at 1.5470.
For further proof, when the end of the year rolls around, it will amaze you to see how cable stayed within technical levels throughout the entire year.
Wider stops are needed with cable than any of the other majors, because its daily range is larger than all the rest. This means daily S&R levels are going to be farther apart. The pair still stays within its own technical parameters.
I know those are bold statements, but I'd like to see the proof otherwise.

GBPUSD is one pair that doesn't respect technical levels. Anybody who watches the price will very quickly realise this. The reason is that GBP is affected by the bigger pairs EURUSD and USDJPY. It is virtually unheared of for EURUSD to do something without GBPUSD following. It may seem pointless to trade GBPUSD for this reason. Let me explain.

Let's say Cable has support at 1.7450 the price is now close to that point. Let's also say EURUSD is directionless and is moving up and down within a tight range. A fast 10 pip move down in EURUSD within the rage can make GBPUSD break support. This happens a lot. In these cases GBPUSD usually comes back up but not before trapping some breakout players and shaking out some weak longs.

To trade GBPUSD successfully therefore requires keeping an eye on the EURUSD and USDJPY pairs. The question then is: why not trade the big ones and let go off cable? The advice I give to inexperienced traders is to stick to EURUSD. That pair is by far the easiet to trade because it is huge and largely independent of the other pairs. One reason one may trade Cable is if one likes to get their profits (as well as their losses quickly).

Having said all that, once you know what you are doing, GBPUSD can be the best pair to day trade because it gives you one of the most important aspects of successful trading: everthing else being equal, an instrument that gives you a lot of opportunities to trade is the one you should choose.


P.S. You will also generally need a wider stop with GBPUSD.

Hope this helps.

 

[fayalac]

The behavior of any pair in the very short (scalp, intraday) therm is not the same as in the long therm, in the very short therm he is rigth into a long run technicals are technicals, i understand you should read a little more about economics and international finance.

 

[4xpipcounter]

I don't want to seem obstinate, but I not only disagree with FX Scalper, I think he is dead wrong. Attached is a chart of the daily GBP/USD. If cable does not respect technical levels, then why has price for 7 consecutive days rested so nicely on the kijun and the 50% level of the year's opening price and the YS1 at 1.5584?
Why is it almost money in the bank that cable is headed back to 1.5278 if it does not respect techncial levels?
Friday's break of the aformentioned level was halted by my WS1 at 1.5470-- another "technical level".
When you say GBP follows the euro, do you mean on Aug.17th (look at the daily) when euro had a bullish candle and GBP had a bearish candle?
You said the bigger pairs are the EUR/USD and USD/JPY. The biggest mover of all the 8 majors is cable. In other words, it has the largest daily range.
All forex pairs are mathematically correlated, which is why they all seem to move at the same time, or stand still at the same time. I.e EUR/USD / GBP/USD = EUR/GBP (Just common algebra. To prove that, take the current EUR/USD price divide it by the current GBP/USD, and it will equal the EUR/GBP price.). If the USD, EUR, and GBP are all being effect within that correlary, then all the currencies are being effected, one way or another.
You need a wider stop with cable because of the wider daily range it has. Seeing the range is wider so are the daily S&R's, which also translates into weekly, monthly, and yearly S&R's being wider than the rest.
The only direct effect that you see with the EUR/USD, GBP/USD, and the USD/JPY is when the USD is effected. That is because the 3 pairs share it as the common currency. Other than that, there is no correlation, even though it is a big one.
Now, I got news for you. When the USD is moving, there will also be a correlation with the USD/MXN, USD/RUR, AUD/USD, etc, etc. Why? Because, USD is the common currency of all the pairs.

GBPUSD is one pair that doesn't respect technical levels. Anybody who watches the price will very quickly realise this. The reason is that GBP is affected by the bigger pairs EURUSD and USDJPY. It is virtually unheared of for EURUSD to do something without GBPUSD following. It may seem pointless to trade GBPUSD for this reason. Let me explain.

Let's say Cable has support at 1.7450 the price is now close to that point. Let's also say EURUSD is directionless and is moving up and down within a tight range. A fast 10 pip move down in EURUSD within the rage can make GBPUSD break support. This happens a lot. In these cases GBPUSD usually comes back up but not before trapping some breakout players and shaking out some weak longs.

To trade GBPUSD successfully therefore requires keeping an eye on the EURUSD and USDJPY pairs. The question then is: why not trade the big ones and let go off cable? The advice I give to inexperienced traders is to stick to EURUSD. That pair is by far the easiet to trade because it is huge and largely independent of the other pairs. One reason one may trade Cable is if one likes to get their profits (as well as their losses quickly).

Having said all that, once you know what you are doing, GBPUSD can be the best pair to day trade because it gives you one of the most important aspects of successful trading: everthing else being equal, an instrument that gives you a lot of opportunities to trade is the one you should choose.


P.S. You will also generally need a wider stop with GBPUSD.

Hope this helps.

 

[4xpipcounter]

The chart is not attaching right now. It is say, "Internet Explorer cannot display the web page. That chart is in my thread for your reference.

I don't want to seem obstinate, but I not only disagree with FX Scalper, I think he is dead wrong. Attached is a chart of the daily GBP/USD. If cable does not respect technical levels, then why has price for 7 consecutive days rested so nicely on the kijun and the 50% level of the year's opening price and the YS1 at 1.5584?
Why is it almost money in the bank that cable is headed back to 1.5278 if it does not respect techncial levels?
Friday's break of the aformentioned level was halted by my WS1 at 1.5470-- another "technical level".
When you say GBP follows the euro, do you mean on Aug.17th (look at the daily) when euro had a bullish candle and GBP had a bearish candle?
You said the bigger pairs are the EUR/USD and USD/JPY. The biggest mover of all the 8 majors is cable. In other words, it has the largest daily range.
All forex pairs are mathematically correlated, which is why they all seem to move at the same time, or stand still at the same time. I.e EUR/USD / GBP/USD = EUR/GBP (Just common algebra. To prove that, take the current EUR/USD price divide it by the current GBP/USD, and it will equal the EUR/GBP price.). If the USD, EUR, and GBP are all being effect within that correlary, then all the currencies are being effected, one way or another.
You need a wider stop with cable because of the wider daily range it has. Seeing the range is wider so are the daily S&R's, which also translates into weekly, monthly, and yearly S&R's being wider than the rest.
The only direct effect that you see with the EUR/USD, GBP/USD, and the USD/JPY is when the USD is effected. That is because the 3 pairs share it as the common currency. Other than that, there is no correlation, even though it is a big one.
Now, I got news for you. When the USD is moving, there will also be a correlation with the USD/MXN, USD/RUR, AUD/USD, etc, etc. Why? Because, USD is the common currency of all the pairs.

 

[4xpipcounter]

Sorry folks, this is getting embarassing. There could be a technical problem at my end. I notice the chart in the other post did attach.

The chart is not attaching right now. It is say, "Internet Explorer cannot display the web page. That chart is in my thread for your reference.

 

[4xpipcounter]

If you are referring to movements that news creates, it is still confined within the technical parameters. All you get within the context of the S&R's are spikes on the other side of them. An example was the USD/CHF short I had. There was a 1-minute move of 96 pips one-way. Afterwards, it recovered from the shock and was right back in the trend. If I was sitting in front of my computer, I probably would have freaked out in seeing how it moved against my trade. When I got back I was further up on the trade than before the news hits.
Also, even that spike stayed very nicely within the week's R1 and only hit the fartherest reaching 4-hour R. Even with that strong of a spike against the trade, it still was confined. Those S&R's I'm referring to are my proprietary S&R's.
I don't want to sound conceited, but I'll tell you like it is. I don't need to fill my head up with economics and international finance. All I need is my technical methodology, and it gets me plenty of pips. Visit my thread, as I have my analysis on 28 pairs and gold for the upcoming week. Papertrade them and test its accuracy. It should prove why I do not fill my head with a bunch of reading on economics and international finance. While you're reading, I'm playing with Tucker on our property. That his picture--lol.

The behavior of any pair in the very short (scalp, intraday) therm is not the same as in the long therm, in the very short therm he is rigth into a long run technicals are technicals, i understand you should read a little more about economics and international finance.

 

[fayalac]

Its hard for me to treat you as a newbie, is seems quite clear you´re not, but i have news for you also. We are talking about intraday trading, so lets get rid of what 1 years charts say. I have been many times using the simple logic you try to explain and UPDATE!, UPDATE!, and GBP/USD many times goes against the logic, not in the long therm, i have lost some pips using that logic. Once i understood these pair can behave at a different way i have made successfull each trade i have entered at in that pair.

 

[fayalac]

Ok mate, i am sorry if i sound rude it was not my intention, i respect people at every sense, please take my apologyze.
Anyway there is an economic support for the long therm equilibrium at the markets, these equilibrium will allways be reached into the middle and long therm, specially in these markets.
I also make a bunch of pips without too much technicals but i have reached to make these pips only once i understood all the theory behind the markets and how useless can be to try to profit supported only in technicals since what i do is daytrade (veru short therm).

 

[4xpipcounter]

The yearly reference I made was only within the total scope of the context. I know the main subject of our conversation is intraday trading. This is why I mentioned how on Friday that cable hit perfectly my WS1 and bounced. Most pairs treat daily S&R's as a continuation to the next level, but bounce off of weekly levels. This is why the weekly levels are important to use in intraday trading. Monthly and yearly levels will also have an effect, but not as profound to the daytrader.
As long as you have developed a successful trading strategy, I will never argue with that. You are also to be applauded if you are trading profitbaly, consistently, because you are in the top 10% of all traders. My only point of contention is that cable stays within technical parameters just like all other pairs do. This is also why I designed my S&R's the way I did. They are not only excellent levels, but they also measure a trend's range within any time period, and regardless of the current circumstance, they are still effective. That, combined with the ichimoku cloud, gives me an awesome 1-2 punch.
I follow 28 pairs, gold stock market and any other market someone may be interested in. All markets are tradeable just like the next one, because they all behave within any TF with respect to its techncial parameters. This, in part, answers why my analysis and forecasts are right 85--90% of the time, and why I post 80% winning trades. Again, I am only a technical trader. That is all I pay attention to. At one time or another, I have traded all of the aformentioned markets.

Its hard for me to treat you as a newbie, is seems quite clear you´re not, but i have news for you also. We are talking about intraday trading, so lets get rid of what 1 years charts say. I have been many times using the simple logic you try to explain and UPDATE!, UPDATE!, and GBP/USD many times goes against the logic, not in the long therm, i have lost some pips using that logic. Once i understood these pair can behave at a different way i have made successfull each trade i have entered at in that pair.

 

[4xpipcounter]

You never impressed me as rude. I have been enjoying our conversation.
I think both of us have made valid points to support both of our arguments. You are doing well as a trader, and I am too. We have a complete different approach, but both of us can justify our approach because our success backs it up.

Ok mate, i am sorry if i sound rude it was not my intention, i respect people at every sense, please take my apologyze.
Anyway there is an economic support for the long therm equilibrium at the markets, these equilibrium will allways be reached into the middle and long therm, specially in these markets.
I also make a bunch of pips without too much technicals but i have reached to make these pips only once i understood all the theory behind the markets and how useless can be to try to profit supported only in technicals since what i do is daytrade (veru short therm).

 

[fayalac]

Thanks for your answer, i respect your words, and let me tell you it is extremelly difficult to use ichimoku´s cloud to trade, at least for me.
I allways recomend people to use the most simple trend following indicators, and ichimoku is not one of those, so my respect for you.
Yes, in fact i have striggled to build up a consistently profitable trading method which allways pays me back each week ranking from 3 to 35% of my equity, depends on the markets, i just lost one week - about one month ago - because i made a simple mistake, it wasnt too much and i already recovered each penny but the main message here is have a method and follow it despite if it it based on techincals, fundamentals ot whatever.
Thanks again mate.

 

[4xpipcounter]

In order to stay focused, you almost have to turn a complete deaf ear to anyone else's method of trading.
We do have each other's respect as traders, so I'm not afraid to tell you, I could never picture myself making a trading decision based on econmic climate or how things are going internationally. There was a time I thought the I.C was highly complicated, but in keeping an open mind, I learned how easy it actually is to use.
Kind of ironic. I had a losing week about 4 weeks ago. I guess I'll take it. It was my 1st one in 3 years.
Your last sentence hit the nial on the head, and that is what I often tell newbies. Develop your personal methodology. Make sure it is yours. Become totally self-sufficicent on it where it is to the point that it does not matter what anyone says.
Keep up the good work!

Thanks for your answer, i respect your words, and let me tell you it is extremelly difficult to use ichimoku´s cloud to trade, at least for me.
I allways recomend people to use the most simple trend following indicators, and ichimoku is not one of those, so my respect for you.
Yes, in fact i have striggled to build up a consistently profitable trading method which allways pays me back each week ranking from 3 to 35% of my equity, depends on the markets, i just lost one week - about one month ago - because i made a simple mistake, it wasnt too much and i already recovered each penny but the main message here is have a method and follow it despite if it it based on techincals, fundamentals ot whatever.
Thanks again mate.

 

[chocolatecake]

Re: EURUSD is hardly moving, but cable has been all over the place today

i like simple pairs that move slowly with low spreads.
Good for my bank account.
Good for me, less stress.

I trade eur/usd.
If i wasn't trading this pair i would probably trade usd/chf. But i am happy with eur/usd. No need for me to change or think about it.

 

[fayalac]

Those are different pairs, sometimes you can find good chances at one and other times at the other pair, in my case i follow 20 pairs and i really dont care which ine is it except for those which charge over 7 pips spread.
I do not follow short trends, if i close a position is because it already won at least 50 pips and its stopped, because the trend changed or because i made a bad desition.
Any of those work perfectly but doesnt offer the same opportunities at the same time.

 

[verbum4it]

I like EUR/USD very much than GBP/USD, because the spread of EUR/USD is low than GBP/USD

 

[Greg88]

I suggest Gb/ Yen because of the trending abilities.
Yes, the commision is more , but if you have a simple trend system and you do (most
importantly) follow it EASILY- then G/Y is the way to go.
Also- as mentioned above it follows e/usd - so why not have a leading indicator ?
Only experienced , thinking traders can see this easily.

 

[forker]

both are good to trade.

 

[fayalac]

I suggest Gb/ Yen because of the trending abilities.
Yes, the commision is more , but if you have a simple trend system and you do (most
importantly) follow it EASILY- then G/Y is the way to go.
Also- as mentioned above it follows e/usd - so why not have a leading indicator ?
Only experienced , thinking traders can see this easily.

I totaly agree with you. Just one thing....., everybody needs a leading indicator even the most experinced traders....
Many people claim that is is perfectly possible to follow a trend without an indicator, i agree with them -i can do it -, it takes time but it can be done. The point here is that it is easier to avoid a bottom or a peak with an indicator than witout it, or by the other hand to realize a trend change with enough time.:idea:

 

[forker]

i disagree, price alone is far more effective at determining change than indicators.

 

[fayalac]

i disagree, price alone is far more effective at determining change than indicators.

We are talking here about intraday and you are talking about fundamentals.
We have to follow the whole picture