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Tag Archives: GBP/JPY
A GBP/JPY trend reversal may be underway on the D1 time frame. Look for a buy signal on this pair in the main session starting tomorrow morning. You can watch The Forex Heatmap® to confirm any buys and also the live heatmap alert system. Current pricing is in the 132.00 area, overall pip potential is up to the 138.00 resistance area, noted on the chart.
Today in forex trading the GBP (British Pound) was weak on all pairs in the group and this drove very strong price movement. The live trading signals for the GBP and JPY (Japanese Yen) pairs are shown below from The Forex Heatmap®. The GBP/USD and GBP/JPY had very strong sell offs and broke through short term support levels and into their long term trends. The NZD/JPY also sold off on the overall JPY strength in the market today. The GBP/JPY and GBP/USD are in strong downtrends and both pairs are at post-Brexit lows, and the GBP/USD is at a multi year low. We see a lot more sell potential ahead on these pairs. The Forex Heatmap® provides live buy and sell signals for 28 pairs. You can see the signals from the JPY and GBP pairs in the images below along with the nearly 400 pip sell off in the GBP/JPY.
Today in forex trading the GBP strength caused strong movements on many pairs. The GBP/JPY had a buy signal on The Forex Heatmap®, along with several other GBP pairs showing great quality trading signals. The British Pound to USD exchange rate also soared today. News from the GBP about the claimant count employment data along with average earnings triggered the strength in the GBP today, and all GBP pairs we follow had technical and price breakouts. Based on today’s news we expect the GBP to continue strengthening. The real time buy signals from The Forex Heatmap® are shown below along with some of today’s GBP price chart movements. The GBP/JPY should continue higher to the 162.00 resistance area, and the GBP/AUD has significant upside on the larger time frames. The Forex Heatmap® provides live buy and sell signals for 28 currency pairs, it is an easy to read tool for guiding all of your forex trade entries.
Today in forex trading the GBP/JPY had a buy alert on The Forex Heatmap®. This pair had very strong movement to the upside. This pair is likely to continue to the next major resistance area at 162.00. Since the overall trend on the MN time frame is still down, we suggest scaling out lots on any profitable buy entries and trading on this pair. Other JPY pairs like the CAD/JPY also broke out and moved much higher today, the CAD/JPY is forming a larger trend on the W1 time frame. The live trading alerts form The Forex Heatmap® are for buying and selling 28 pairs. Below you can see the heatmap live signal showing GBP (British Pound) strength and JPY (Japanese Yen) weakness in the market, creating the strong movement in the GBP/JPY. This is a powerful forex indicator that is part of our profitable trading system.
Forex traders can use GBP news drivers on the economic calendar to locate strong price movements. Traders can capture these movements and profit from them with the techniques we will demonstrate. This article will show any trader how to track these volatile GBP (British Pound) pairs and we will also show you a great indicator set for trading these pairs.
Locating GBP News Drivers
Forex traders should become familiar with the world economic news calendar. The calendar can be customized to show GBP news events or news events for any other currency they like. Some examples of scheduled GBP news announcements that create volatility in the GBP pairs are: Consumer Price Index, Core Consumer Price Index, Bank Of England Interest Rate Decisions, BOE Asset Purchase Target, Manufacturing PMI, and many others. These economic news drivers are scheduled and traders can watch the market after these news announcements for trading opportunities to buy or sell the GBP pairs.
If you need a world economic news calendar to track GBP news events we have one on our website. These handy calendars will also provide you with scheduled news drivers for other important and most actively traded currencies. Now that you know how to look for scheduled GBP news, and what time these economic news announcements will be. The next thing you need to do is determine how to enter trades on the GBP pairs when they move up or down after the news.
GBP Pairs And Volatility
We trade 28 pairs at Forexearlywarning, and 7 out of the 28 pairs are GBP pairs. These pairs are all quite volatile. The EUR/GBP is the low volatility pair in the group, and the GBP/NZD is hyper volatile. If all 7 GBP pairs moved 1% in one day, the total movement on all 7 GBP pairs would be around 1000 pips on the day this article was written, and it used to be much higher before the Brexit vote. Some forex traders almost cannot believe it, but this type of volatility makes the GBP pairs group the most volatile group of most commonly traded pairs. The opportunity is here to make a lot of pips and the volatility makes it possible.
Example GBP News Trade and Signal System
On April 4, 2016, the GBP (British Pound) had a scheduled news driver on the economic calendar, it was the GBP Manufacturing PMI news announcement. The net result for traders was that the GBP weakness dominated most of the market movement after the news announcement. The GBP was weak on all pairs on this day and pairs like the GBP/JPY, GBP/CHF and GBP/AUD all sold off hard. The trading signal you see below is from The Forex Heatmap®, which provides live buy and sell signals for the GBP pairs and 7 other currencies. It provides live trading signals during forex market hours and after all forex news drivers across 28 pairs. As you can see the GBP was weak on this day after the GBP news announcements and this drove strong price movement.
Also, an example chart of the GBP/CHF sell off is also shown, you can see this pair alone sold off 175 pips. The GBP pairs as a whole moved much more than 1000 pips in one trading session on this day.
If you combine the trend, GBP news economic drivers, and The Forex Heatmap®, you can start to build a powerful trading system. On this day the GBP/JPY was in a long term downtrend and it also dropped on the GBP weakness. We estimated on his day that the GBP/JPY should continue down to at least the 158.50 support level on the H4 time frame, or possibly much lower. The GBP/AUD broke out to the downside and this pair resumed the downtrend on the W1 time frame, withthe next major support is at 1.8350, so additional pip potential is available on the GBP pairs. The live heatmap signals will give you a profitable trade entry, but if you are trading with the major trends and breakouts you can start riding the trends lower on these pairs and add to your pip totals.
More Volatility and Strong Price Movement
The GBP pairs are naturally more volatile, but less volatile pairs can become much more volatile after scheduled news divers, or other unexpected worldwide news events. Pairs that are less volatile become much more volatile after news events, as logn as one currency is consistently strong and the other currency in the pair is consistently weak. We track 8 currencies including the GBP pairs with our indicators. Following all 28 pairs and 8 currencies is fairly easy, and when combined with our alert systems and the economic calendar, you will always be in the know when currencies are moving.
Today in the forex market we had a sell alert on the GBP/JPY from The Forex Heatmap®. The Japanese Yen (JPY) was strong on all pairs in the group and all of these pairs dropped. There was also some GBP weakness in the market, so this pushed the GBP/JPY strongly lower. The long term trend on this pair is down, but is still has some near term support levels down to the 160.25 support area before fully breaking out. For this reason traders should scale out some lots on any profitable trade entries, while setting stops to break even. The alert system you see below is The Forex Heatmap®, which provides live visual trading alerts for 28 pairs and eight different currency groups.
In this article we will present a currency strength strategy for forex trade entries and another strategy for market analysis, both strategies work. These two strategies will improve any trader’s understanding of the current market condition, along with more much more profitable trade entries, trade after trade.
Currency Strength Strategy For Current Market Momentum
Measuring the current market momentum in real time is one currency strength strategy. In the example below the USD (US Dollar) was weak on all pairs. This drove significant movement for traders on this day (2-3-2016) on all seven of the USD pairs we follow at Forexearlywarning.com. There was also some minor NZD (New Zealand Dollar) and CAD (Canadian Dollar) strength in the market. So the NZD/USD moved strong to the upside, makes perfect sense. Since the NZD/USD was also in an uptrend at this time, it should continue higher on the D1 time frame to the 0.6800 resistance area.
Also, the USD/CAD dropped and is currently at one support level, so in this case a trader may choose to scale out lots and reduce position size. The EUR/USD also moved up strong on this day and broke out of it’s trading range, now this pair has additional upside on the D1 time frame as well. So you can also plan more trade entries going forward on the pairs that are trending. A phenomenal and profitable day of trading for any forex trader on only one group of pairs, with strong movements. The real time currency strength indicator you see below is The Forex Heatmap®, which provides live buy and sell signals for 28 pairs, including the US Dollar pairs and seven other currencies
Another Example of Intraday Currency Strength
This is another example of how to use intra day currency strength for strong trade entries. This example is from 7-5-2016. On this day the British Pound (GBP) was weak on all pairs, and the Japanese Yen (JPY) was strong on all pairs. This caused a strong sell off on the GBP/JPY. This pair sold off over 300 pips in one trading session, also, the major trend on this pair is down on the larger time frames, so more pips are possible despite this strong trade entry.
Strong signals like this happen routinely on the forex in the 8 currencies we track at Forexearlywarning.com, but since so many traders use technical indicators they always miss the pips. Using easy to interpret visual tools like The Forex Heatmap®, which monitor the strength of the currencies and money flows in real time, you can trade like a pro.
Using Currency Strength for Overall Market Analysis
Currency traders who like our real time currency strength tools can have a big advantage if they use currency strength to analyze the entire market every day. Always knowing the overall condition of the market, based on trends will raise the bar even higher and complete your overall currency strength trading system. Analyzing the market to determine the strongest versus weakest currency takes time but it well worth it, and your reward will be increased pips.
You can set up some moving averages for all of the JPY pairs, USD pairs, NZD pairs, etc. to start. Then drill down the charts daily using multiple time frame analysis. For example if all of the JPY pairs are in up trends, then you know the JPY is weak. Then, if you can find a strong currency to go with it, you are in business to make pips. On the Forexearlywarning website, we show you how to set up the trend indicators, and how to analyze the market by individual currency. This way you will not only be trading in the direction of the daily market momentum, but also with the trend.
Today in the forex market the GBP/JPY had a sell signal on The Forex Heatmap®. This pair sold off strong to just above the 184.00 support level. We would scale out lots at this price but it could continue lower and has additional room to drop on the H4 and D1 time frame to the next support level. The AUD/JPY also dropped today and this pair should continue down to at least the 82.50 support, and possibly much lower since this pair is in a strong downtrend. The sell signal for the GBP/JPY is below, this is the Forex Heatmap®, it gives live trading signals for 28 currency pairs. You can see that the GBP (British Pound) was weak today and the JPY (Japanese Yen) had some strength, creating a scenario for a strong sell off on the GBP/JPY pair. This profitable trading system for 28 pairs is available from Forexearlywarning.com.
Today in forex trading the GBP/JPY had a buy signal on The Forex Heatmap®. This pair cycled up to the 187.00 area resistance, we would scale out some lots at this resistance area. The GBP/USD also moved up strong and this pair has no nearby resistance, it should continue higher on the D1 time frame. Check the signals below, the GBP (British Pound) was strong on all 7 pairs and the JPY (Japanese Yen) was mostly weak. This creates conditions for strong movements on volatile pairs like the GBP/JPY. The Forex Heatmap® provides live buy and sell signals for 28 currency pairs, and is part of our highly profitable trading system.
Today The Forex Heatmap® signaled consistent JPY (Japanese Yen) strength in the market. The GBP/JPY dropped strong to the downside, this pair is trending down on the D1 time frame and should continue lower at least one more day to the next major support. The EUR/JPY has dropped to one support level and we would be scaling out lots and managing profits at the current price levels. The Forex Heatmap®, shown below, provides live trading signals for 28 pairs.