What is cable in forex trading
Oil Crumbles, Cable Reverses and the Dollar Continues with Bullish Structure. GBP Reacts to CB Talk as the Queen Speaks.
Gold, USD Strong Inverse Correlation and in Confluence. FTSE Further Develops Range on Sharp Turn Lower. Dow Jones Industrial Average Struggles to Hold the Gap Higher. One of the primary pieces of information exchanged on this first transatlantic cable were currency quotes on the two currencies. A lot has changed since that first Trans-Atlantic cable was placed on the floor of the Ocean, but the GBPUSD currency pair continues to remain a favorite to traders around the world.
The United Kingdom and the United States represent two of the oldest, modern economies in the world. Both economies feature a relative amount of safety, due in large part to the sheer size that each represents to the overall global economy.
Gross Domestic Product in per the International Monetary Fund. This is the period just before the United States opens for business, leading to some of the most liquid trading times of the day. As we found in the DailyFX Traits of Successful Traders series , the different trading periods in the market can exhibit markedly different tones.
The Asian Session s from Sydney and Tokyo have a propensity to be more accommodating for Range-Trading approaches, as hourly moves are — in general — smaller than what we may see during the more active London and US sessions.
Range-Trading approaches often look to buy when price is cheap and at support; and sell when price is expensive, or at resistance. There are quite a few different ways of doing this.
Cable (foreign exchange) - Wikipedia
For traders looking to trade GBPUSD during the more active times in the market, when liquidity is coming from Europe and the United States, breakout trading may be more accommodating.
With breakouts, traders are watching support and resistance, much like in the Asian session. But differing from the Asian session, support and resistance may be broken much more frequently as the onslaught of liquidity entering the market can potentially push price in one-direction for an extended period of time.
As you can see above, price resisted twice at a price just shy of. This is what traders speculating during the London and US sessions should be looking for.
For traders looking to trade breakouts on GBPUSD, there are, once again, quite a few ways of doing so. A key component of trading breakouts is looking for strong risk-reward ratios, such as the trader risking 20 pips, but looking for pips if correct.
As for strategies to trade breakouts, traders can look to the Price Channel indicator , looking for breaks of the highs and lows that were seen on the longer-term charts. Trading the Dragon - GBPJPY 16 of Trading the Euro - EURUSD. To contact James Stanley, please email Instructor DailyFX.
You can follow James on Twitter JStanleyFX. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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