This is a guest post by Ahmad Hassam
GBP/USD is one of the major pairs that gets heavily traded. GBP/USD pair is also known as the Cable. GBP/USD pair is affected by the interest rate differential between the Bank of England (BoE) and the Federal Reserve (FED). GBP/USD pair tends to have a positive correlation with EUR/USD and a negative correlation with USD/CHF. For example, a few days back this pair was trading in tandem with the EUR/USD pair.
Many traders trade GBP/USD and EUR/USD. They need to keep the positive correlation between the two currency pairs in view when trading both these pairs together. There are many strategies to trade the GBP/USD pair. Some are heavily based on the London Market Open as this pair normally starts trading in a range a few hours before the London Market open and tends to make a breakout after the London market open.
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This is a guest post by Ezekiel Chew
EUR/USD climbed as solid eurozone sovereign debt sales and signs of Greece moving closer to a vital debt-swap deal eased concerns and renewed confidence over Europe’s refinancing capability. Spain and France sold bonds at lower yields yesterday and today Greece and its private bondholders will resume debt-swap talks to overcome differences on interest payments. Currency strategist at Bank of New Zealand, Mike Jones said “Given that the European debt markets are the focus at the moment, positive signs emerging there have helped sooth any investor nerves. The market really focused in on the negative headlines rather than the arguably slightly firmer details of that employment number”.
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This is a guest post by Alexander Treston
The Fibonacci retracement tool is one of those tools in forex that a forex trader simply cannot do without. This is because in the financial markets, prices do not move in a continuous straight line, but in a convoluted twist of pullbacks and advances. Whenever the price action of a currency has moved substantially in a particular direction due to a very strong trend, those traders who were able to get in early would at some point, decide to take some profits from their trades. This will place the gaining currency on offer and will lead to a supply excess over demand for that currency at that particular time, leading to price pullbacks.
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