FX CURRENCY WATCH
Sterling’s long-term average performance
Chart 11. GBPSEK 3 month chart
Looking at Sterling’s longer-term average performance chart (see Chart 13), at present just over 25% of the 2015-2016 decline has so far been retraced. If the recovery phase only manages to eventually retrace around 38.2%-50% of the 2015- 2016 decline before leaving a key lower top for a return to underlying weakness, that implies a possibly further recovery for Sterling versus the other 9 major currencies of (on average) between 5% & 9% over coming weeks and months.
The danger of trading corrective phases is that the underlying trend can resume sooner than expected. As such, those looking to benefit from an additional Sterling recovery over coming weeks and months will need to be alert
to
the possibility of a sudden change in market sentiment, ending recovery hopes
and pointing Chart 12. Sterling’s average performance 3 month chart a renewed recovery at
a resumption of the underlying trend. While the latest dip is favoured to be corrective ahead of
phase,
the alternative of an early return to underlying weakness cannot entirely be ruled out.
Steve Jarvis
Chief Analyst Tradermade
Read Steve’s USD/JPY, EUR/SEK, USD/ZAR and Chart 13. Sterling’s long-term average performance chart (versus 9 other majors) 42 FX TRADER MAGAZINE January - March 2017 EUR/NZD analysis on page 68-72
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81