It seems to me that GBPUSD & EURUSD are ready for a nose dive

[FXGenius]

Hi,

Repeated attempts by both to form a new high, resulting in even a lower one for last 1 month, indicates that they are ready for a nose dive. In my opinion GBPUSD may achieve the low of atleast 1.8500, which may even extend to 1.8000, but EURO seems more vulnerable. This is just my feeling and eyeballing of daily chart, I could be totally wrong.

What you guys say?

[woodmarket]

Hi,

that is exactly my opinion. Too many upside failures though the US economic indicators have not been any good. If you also take into account the COT report, EUR-USD and GBP-USD are ready to dive. If this projection is correct, the first pair will meet 1.25 and GBP-USD will at least 1.84.

[FXGenius]

Woodmarket your ID indicates that you trade in a different market, lol. Anyway thanks for your input. Where do you read the COT report? Please give me the URL, etc.

[FXGenius]

It is my observation that if the market sentiment is positive of a currency, its bad news are no more than stop hunting spikes.

[astro]

I have that feeling too, although technically speaking, cable has been moving in a down channel (which is bullish in nature) since August 7th until August 21st when is started drifting sideways forming a perfect range. This causes a conflict for me (bearish feeling, bullish flag, sideways range....)
Anyways, I only trade what I see, so we'll have to wait for a breakout of this range to see where it's heading

[woodmarket]

Hi,

you may find the COT report at http://www.cftc.gov

[FXGenius]

Thanks woodmarket and astro.

[FXGenius]

Originally Posted by woodmarket

Hi,

you may find the COT report at http://www.cftc.gov

A good place to see COT data on charts is: http://www.freecotcharts.com/charts/BP.htm

Commercials seems to be heavily long on US dollar.