#TSOT - DIVERGENT Trend on CABLE v. EURO

GBPEUR Overlay

The EURUSD retracing @1.1128 has set the pace of the decline to new records for the month as the bear sentiments prevail supporting a steadier USD holding above the 95.05 levels. While CABLE's ability to sustain its directional trend with prices @1.4692 to this writing; proves well that secular forces have indeed maintained its course contrary to the USD strength.

It was fortunate of us @megatrade101 having able to identify that the GBPEUR cross rate, as an alternative currency pair to trade with would be another positive position to hold since May 11, 2016 and held over past the 18th of May to this current levels. Although, gains accumulated is already well protected against any unexpected change that may occur within its time cycle. Session pullbacks are not to be discounted at this stage even with CABLE.

#GBPEUR CROSS RATE - Market Call VALIDATED!

#GBPEUR VALIDATED! CABLE 5.11.16 resumes rally w/ momentum as tech formation supports price action as of 5.24.16

GBPEUR 1.3089 as of 5.24.16 US session high

UPDATE: GBPEUR 1.3160 as of 5.30.16

Reference #TSOT -  #GBPEUR 2nd Alternate Trade Strategy

https://twitter.com/MegaTrade101/status/735095028024889344

#TSOT - #USDX - #ICE - Alternate Trade Strategy

DX Trade Reference 5.11.16

DX Futures contracts are used as alternative trade strategies along with CABLE earlier position to arbitrary hedge and protect gains accumulatively made from its daily corrective move from the 93.77 resting at the Advance / Decline Line support, projected upward direction. A long trade position well calculated against its probable decline. Click chart to enlarge.

The isolated market reaction identified where Cable's upward move above the 1.4600 is contrary with the Euro's the  decline back towards the 1.1180 low. While GBPUSD is concurrently moving in line with the US Dollar direction with minor setbacks during the US session.  As this is a typical strategy applied well to simply carry a protective position against any unexpected pullback from the GBPEUR Cross trade as our 2nd alternative trade. Likewise, the third (3rd) swing from a USD decline alignment when it marked a 91.90 basis point low turning point as a price reversal was a huge factor for this trade.

#TSOT - #GBPEUR Cross Rate - 2nd Alternate Trade

Applying CABLE as basis from 5.11.16 analysis; the GBPEUR cross rates was the preference among the two of the crosses best suited with the current market condition. The inverse cross has more of a market potential than traditional way of trading EURGBP.

Thus giving a distinct advantage of a relative stronger GBP v. EUR moving above median resistance 1.2600 even figure from focal turning point  With prices currently @1.2955 as of this writing.
Momentum and investors shift focus on CABLE's strength contrary to BREXIT which may take time. Market is driven by secular force bias to an upward direction supported by technical setup for now. A technical overlay using GBPUSD would reflect that the current direction for the Pound above the 1.4400-1.4500 shows some encouraging signs that justifies the current strength of the GBUSD major.

Two (2) Validated trades: GBPEUR & GBPJPY Crosses

The recent price recovery of CABLE from the week's low @1.5155 and currently @1.5275 has provided the momentum run for both GBPEUR & GBPJPY crosses a leg higher. That, of course has also been correlated with the corrective move on the USD as it pulls back this morning lower opening in the Asian session. Note that the GBPEUR an "Alternative Strategy" that we covered in our previous market call last Nov 09 which led to the comparative strength and weakness correlation between the Cable & the Euro as a good preference to choose from as against a top heavy on Yen related crosses among others in our video support and "Trade Summary On Cross Rates 2" .

Although, there may well be a probable continuation of this run; it is in our best interest to have settled and booked the two cross correlated currency pairs based on their time exposure and target objectives. These trades were in effect as follows, with the GBPEUR from Nov. 09 -to- Nov. 19th 2015, and booked @1.4275 in the Asia session today. While the GBPJPY was from Nov. 11 -to- Nov. 19, 2015 was likewise done @188.35 as it meets our price objective at this point of the session.

This validation is dated Nov 19 2015 at the Asian Trading session for MT101 Journal documentation.

 Trend-following has its advantages! And following a trade plan that defines time exposure, price objectives and adapting to market conditions should always be a priority in trading volatile markets.

CCY: GBPEUR as Alternative Trade Strategy

The major stock indices delayed reaction among traders and investors have again surprised the market with a triple digit decline on a Monday start of trading activity. Media coverage of a rate hike has been the main-stream of coverage which we do think is primary been priced-in. However, secular forces are still at work where a probable bull trap has been setup in this decline. A Tug of war between bulls and bears are struggling to dominate the market place.

The GBPEUR cross rate as an "alternative trade" aside from the fact, other than using it as a counter-trade strategy; the GBPEUR cross rate has a better daily swap rate compared to having a negative swap on the single currency is a small bonus for traders.

CCY: GBPEUR as Alternative Trade

Price Action Analysis & Insight: USD CABLE / EURO Cross

The USD remains strong and trades at the higher band of its range. As we have seen a Tug of War between CABLE and EURO; with the Pound gaining over its Euro counterpart in the early US trading session.

While the USD is expected to trade within its range, the preferential choice decided upon this kind of market condition is to go with the GBPEUR cross rate instead of the regular inverse rate of the EURGBP cross. The obvious reason for a positive swap on a daily basis is just one consideration. Yet the established trend remains favorable to the upside. With daily pullbacks to remain and should not be discounted to occur. And defining a counter trade strategy is in place as a cushion against any adverse price fluctuation versus the primary trade position.

Price channel 2 (yellow shade) is way above the price consolidation / range and have managed to move to higher levels not discounting the correction and nearing its initial new price range objective @1.4400 - to- @1.4480. A resistance may emerge as it moves to higher grounds with some selling divergence to occur at these levels. Profit-taking would meet fresh position players moving forward. Wil be considering alternative pairs and stocks included to spread an even playing field.