While doing my reservist, I just thought of sharing with you guys one of my long term forex trade – strongshorting of GBP/AUD/strong. Most traders wont even look at this because the spread is around 10 pips! Then again, let me explain more…
Looking at GBP, I think this currency may probably be the worst performing currency this 2 to 3 months. Judging on the recent economic data triend including the highest employment level ever in 12 years. Tthe GBP should be headed lower.
On the other hand, the RBA intends to raise interest rates again very soon. The good economy due to mining boom (which always fuel inflation) must rise the AUD (to contain inflation).
On the technical side, you can easily see the strong downtrend of GBP pais and decent uptrend of AUD, and hence clear down-down for GBP/AUD!
strongConclusion: From both a technical and fundamental basis, this pair should be headed lower./strong
A side note: We, at Forex Asia Academy (FAA), are currently set up a new blog called a title=Forex Asia Live (www.ForexAsiaLive.com). As our tagline Make It Live, we (me, our traders and strategists) are going to blog about the 3E of our Live trades – entries, exits and experiences. Stay tuned!
