British Pound Forex Trading Timing

In one live report of the British pound trade, it was said that a huge profit opportunity comes from the short position where the bear dominates. The set up is coming forth in fruition and there is a warning for the down turn which is about to confirm. It is a clear sign that the BP currency is over bought.

Forex trader positions that are recognized by CFTC states that the speculative BP long positions are now at the high record. Before, there was only a normal large break at the down turn coming from the over bought levels, thus, there shouldn’t be any difference this time.

The chart represents the BP at the new highs. As said in the previous report, it is not advisable to sell and hope, you have to wait for confirmation of the price momentum. You can see this at the relative strength index and the stochastic. This will confirm whether the price is strong or weak.

As a trader, you need to watch first the waning price momentum before you act. The RSI is fast rising and fast approaching the previous highs as seen on December 2006 that reached 80. In this case, you have to wait for the RSI to turn down. While you are keeping an eye on RSI, you also need to watch the stochastic. When both indicators are already pointing down to the bears, it is time for you take control and have the initial target of 2.0000 level going to 1.9700 level. Timing is quite difficult, so you really have to watch closely on both indicators.

Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com – He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm