If you are a trader of British Pound, here's something you might
want to take in consideration. This is a real time trade of British
Pound that outlines the reason why it cannot sustain current looks and
levels. Most traders think that British Pounds are greater than
Dollars, but then it is not always the case.
Take a closer look
at the monthly chart of British Pounds. You will notice that there is a
triple top on the two dollar level. This is a representation of a near
term resistance. Resistance is a major thing. With this, most traders
think that the forex market is some kind of bullish because it is
penetrated during the short term. The weekly chart shows a 70 in the
RSI. On two previous occasions, this RSI reached to 80, thus, the
prices cannot be sustained and the exchange in the forex market for
British pound is lower. On the daily chart of the live trade, you'll
notice that there is a similarity with the monthly chart. There is also
a triple top on the two dollar level and the RSI is already in the
overbought territory. It is a fact that forex market would normally
crash when the speculators are bullish and that they are on their last
report showing the British Pound longs during the high records.
If
you're an option seller, it may seem that selling the premium look
appealing and it offers you good income. If you are a buyer, look for
markets that have a lot of time to expire.
Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com - He has helped hundreds of people on Trading Forex with Options.
He
has recently developed a free e-course showing you a step by step
process for starting your Forex Trading easier. To learn how to start
Forex Trading with Options without wasting your time and losing more
money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm
