Weekly Support

Charts courtesy of Dynamic Traders. Data provided by eSignal.

Good morning all. Hope you are all looking forward to another trading week.

Historically the Pound tends to gain in price prior to Xmas and althouh it has tailed off a little I would look to hold off any shorts prior to Xmas unless we see a big decline breaking through major support levels.

On weekly charts both the Euro and Pound are both overbought so the bias is down overall.

A colleague of mine has informed me that his bank (which we can refer to as a big dog) have short orders to open at 2.01 for the Pound. If you do your analysis you will see we could have potential targets just over that price. Comms are also very short so if we do continue with the bull run then January we could very well see some heavy declines. If the Pound breaks 2.00 then that will become the figure and a strong one at that. If we deal below it in January or late December then further delcines are most likely inevitable.

I will add Comms charts in a little while.

Don't forget we have some volatile news items this week.

Patience is the key here. Wait for a good opportunity then trade.

Best of luck.