Counter-trade Strategy 711-GBPUSD vs. GBPJPY



GBPUSD as of 7.13 Fig. 1

 Having utilized the GBPUSD to counter-trade the GBPCHF & GBPJPY cross rates have provided the protective hedging strategy for any gains made from the two previous GBPJPY shorts dated 7.03 @124.59 marked on 7.05. And on the 7.11 @122.98 with an average price @123.78 in case that any adverse price changes at the closing Friday's movement. The 1.5391 low served as the initial price meeting short-covering position adjustment and liquidation for the week ending the 13th of July being in the oversold levels. The recovery was likewise due to the corrective daily move lower by the USD for the week. However, the 1.5580 first (R1) resistance level would have to be penetrated on the way higher but still does not indicate a trend reversal but merely a possibility of a major correction from its recent down movement from last week. While the USDJPY have remained steadier with its price levels and closed @79.25. Therefore, any corrective move higher for the GBPUSD ( Cable) would provide and off-setting position if and whenever prices do continue to move higher for the GBPUSD that may spill-over towards the GBPCHF & GBPJPY trade positions for trade strategy 711.

GBPJPY as of 7.13 Fig. 2

The advantage of having to trade and monitor prices with two and more trading systems (Fig.1& 2) and accounts to place the trades would provide the investor and trader a distinct elbow room to move trades and pre-condition the trades with a netting position similar to a market maker's/broker-dealer's market accessibility without having to strain or over-trade in any single account. Since trading balances from previous trades marked to open positions are netted -out to achieved a net positive balance overall on all accounts. Having to have a floating loss while in between trade positions would clearly provide a review of the market behavior and would also determine whether the applied strategies are working or not. Thus whenever the market moves adversely against a trade yet still provide a contrary-hedging strategy to absorb the sudden prices changes and maintain a positive net effect on all positions; then you would know how effective the strategy is. And that such order execution was importantly timed correctly. Please take note that the sequence of market view analysis may be construed to be in the wrong side of the trade is actually a strategy related to other existing or recently marked positions. A careful review of the past analysis compared with the present would be advised.