Compare percentage retracements from the peak for each of GBP, CAD, EUR and AUD vs the USD.- AUD/USD and EUR/USD have exceeded the 61.8% level by a long way.
- CAD/USD (not the usual USD/CAD) is trading around the 61.8% level.
- GBP/USD has not even be able to rise above the 38.2% Fibonacci level. Clearly it is the weakest among the 4 pairs. Hence my choice of GBP/USD in expressing my long USD view. [Only chart here where we can say that the long term downtrend is intact].
- As per Gartman - sell the weakest, buy the strongest.
- Do not make the beginners' mistake of thinking that the one that has gone up the most will be the one that has most room for decline.
07 December 2009
Why GBP/USD?
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