Meaning "Live and let Live."
Vp Explains how it works here.
Meaning "Live and let Live."
The video is sensible. most of the time the traders sentiment is against the market trend. (and why its in this way refers to the philosophy of traders minds and herd behavior. which is not really the subject of this thread.)
In short as I remember it was around 11 or 12 years ago that a retail forex broker (fxcm) start to release its clients position on the net called "Speculative Sentiment Index (SSI)". SSI has been released two times a day, short after fxcm some brokers released their clients position cumulative long and short ratio. (including: Oanda, Dukascopy bank, Alpari And Easyforex which later changed to easymarket ) after some years some of other brokers released the ratio too.
on the first days of SSI some traders had been started to analyzing the data. those days it was something unique. between mentioned brokers only fxcm oprator one time told that the SSI is a contrarian Indicator. while other mentioned brokers never explain more and stated that "these data are only the clients long/short ratio and we dont have any more explain".
after analyzing the long/short ratio by those traders and by another group later, these conclusion I remember have been made:
1- Most of the times the crowed is on the wrong side of the market/trend.(based on the long/short ratio.
2- on a long choppy market the Ratio is less reliable.
3- The Ratio is more reliable on FX majors.
4- Its better to use the average of position ratio of several brokers data not just one broker.
5- The Ratio has nothing to do with scalpers,
6-the best usage of long/short ratio is for swing trading strategies which involved longer duration.
above is the short story of Long/short Ratio as far as I remember.
- Renewed Brexit optimism amid UK PM May’s plans, USD weakness remain supportive.
- Will it test 1.3260 ahead of Carney’s speech, UK Parliament vote on another round of amendments holds the key.
The GBP/USD pair continuous to trade cautiously around the 1.32 handle, as the bulls await fresh Brexit-related headlines for a retest of three-month highs at 1.3217 reached last Friday.
Focus on UK Parliamentary vote on Brexit Plan B
Having faced rejection just shy of the multi-month highs above the 1.32 handle in early Asia, the spot retreated to 1.3190 levels before entering a phase of bullish consolidation, as markets digest the latest Brexit-related developments, with the Irish Foreign Minister Coveney having expressed no need for further compromise on the Irish border backstop.
Meanwhile, the sentiment around the pound also remains buoyed by the Sun News report, citing that the UK PM May privately told the Cabinet she will rule out a no deal Brexit.
The ongoing upbeat momentum around the Cable found extra legs on Friday following the reports that the Northern Irish Democratic Unionist Party (DUP) decided to privately agree to support UK PM May’s ‘Plan B’ Brexit Deal.
Adding to it, the US dollar was broadly sold-off into a Dow Jones Newswires report that suggested the Fed would pause its balance sheet normalization sooner than expected. Moreover, dovish expectations from the FOMC decision due to be announced on Wednesday also keep the USD bulls on the back foot.
Looking ahead, the UK Parliamentary vote on the amendments to the UK PM May’s Brexit Plan B due tomorrow will remain in the spotlight, keeping the GBP traders on the edge. In the meantime, the BOE Governor Mark Carney’s speech due later today at 1430 GMT will be closely eyed for near-term trading impetus.
Carney is likely to participate in a question and answer session, along with other MPC members, about the future of money at the Bank of England's Future Forum, in London.
GBP/USD Technical Levels
Today Last Price: 1.3206
Today Daily change: -7 pips
Today Daily change %: -0.05%
Today Daily Open: 1.3213
Daily SMA20: 1.2852
Daily SMA50: 1.2765
Daily SMA100: 1.2898
Daily SMA200: 1.3062
Previous Daily High: 1.3214
Previous Daily Low: 1.3053
Previous Weekly High: 1.3214
Previous Weekly Low: 1.283
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Daily Fibonacci 38.2%: 1.3152
Daily Fibonacci 61.8%: 1.3114
Daily Pivot Point S1: 1.3106
Daily Pivot Point S2: 1.2999
Daily Pivot Point S3: 1.2945
Daily Pivot Point R1: 1.3266
Daily Pivot Point R2: 1.332
Daily Pivot Point R3: 1.3427
Source: https://www.fxstreet.com/news/gbp-usd-g ... 1901280441
- Cable drops further in the wake of PMI figures.
- Key Services PMI slipped back to 50.1 in January.
- Brexit headlines remain absent ahead of the February 14 vote.
The selling pressure around the Sterling is now picking up pace and dragging GBP/USD to the vicinity of the psychological support at 1.3000 the figure.
GBP/USD offered on poor data
Cable is intensifying the weekly leg lower after the critical Services PMI came in below expectations at 50.1 in January, the lowest level since July 2016.
The sentiment around the British Pound has been deteriorating as of late following renewed pessimism and increasing uncertainty surrounding the Brexit negotiations, all forcing spot to recede from last week’s 2019 highs above 1.3200 the figure.
Still on Brexit, UK’s PM Theresa May is expected to defend her plan to clinch a deal and avoid a ‘hard border scenario’ at today’s visit to Northern Ireland.
GBP/USD levels to consider
As of writing, the pair is losing 0.15% at 1.3016 facing the next support at 1.3000 (high Jan.17) seconded by 1.2965 (21-day SMA) and finally 1.2902 (100-day SMA). On the other hand, a break above 1.3089 (10-day SMA) will open the door to 1.3217 (2019 high Jan.25) and then 1.3257 (monthly high Oct.12 2018).
Source: https://www.fxstreet.com/news/gbp-usd-w ... 1902050946
Cable rises a full cent from the lows
Cable is in the midst of a solid turnaround.
After falling as low as 1.2854, the pair has jumped to 1.2960. Carney highlighted the "fog of Brexit" and warned about a no deal. He also said uncertainty is hurting the economy but the underlying message was optimism, especially if a deal is struck.
The pound is on a five-day losing streak and touched the worst level since Jan 22 but has turned around quickly and is now at a session high. A rise above 1.2979 would mark an outside day and a potential bottom.
Source: https://www.forexlive.com/news/!/cable- ... y-20190207