We looked at the British Pound on Monday and said a large profit opportunity was coming from a short position as the bears take control and the set up is coming to fruition and an advance warning of a down turn is just about to be confirmed.

The currency is clearly over bought.

Net traders positions realized by the CFTC show that speculative British Pound long positions are at record high.

From past experience there is normally a large break to the downside from such over bought levels and this time should be no different.

The charts show the pound at new highs and as we said in our previous report you don’t just sell and hope – wait for confirmation, of waning price momentum via the stochastic and the Relative Strength Index (RSI) to confirm price weakness.

If you pull up a good free chart service such as futuresource.com you will be able to check these indicators, so lets look at them.

Watch and Act on Waning Momentum

RSI – The RSI is rising and as approaching previous highs seen in December 2006 which peaked at 80 (we are currently at 78.83) the RSI line is rising wait for it to turn down.

At the same time keep an eye on the stochastic.

The stochastic is already weakening and both lines down will indicate firm bearish divergence.

When you have both these indicators pointing firmly down the bears should then take control and the target initial target will be the 2.0000 level then 1.9700 (mid and lower Bollinger band)

At present you have a consensus that the British Pound is strongly bullish and unlikely to fall but history shows that at such over bought levels the currency will not be able to move much higher without a correction.

The difficult bit is timing, keep your eye on the stochastic and RSI, to give advance warning of a break to the downside.

The scenario is not yet complete, but could occur anytime between now and the weekend so be alert.

This is a good low risk – high reward trade and if entered the chart high is the obvious stop level. The Pound has had a great run and is still long term bullish but from a short term perspective a shake out of speculative longs will occur and this is the opportunity that is presenting itself now.



By: Kelly Price

About the Author:

FENMORE

 

The Benefits of Online Banking



Justin Mongiardo

Coquitlam, British Columbia, Canada

 

The internet can be used to perform a virtually endless array of tasks. From research to shopping, the web is the place to go for all your needs. In fact, you can even do all of your banking right at your computer. With a few simple steps, you can set yourself up to do all your major transactions and bill paying without ever leaving your desk.

Banking online can help keep you organized. No longer will you need to keep stacks of statements in order to maintain accurate records. With online banking, you can get your statements and transaction history electronically whenever you need. You can even access information about your credit cards, CDs, loans, and more in addition to your regular checking and saving’s account. All of this information is easily accessed from a single web location, which means no more endless searching for the information you need.

The internet is the fastest way to get your financial information. Transactions are updated frequently so you can track your money each and every day. This means you can better monitor your income and spending habits. With this information at your disposal, you’ll find it is much easier to create a workable budget. Some companies can actually help you with this process by offering free budgeting tools or allowing you to synchronize your account information with programs like QuickBooks and Microsoft Money.

With online banking, you can do a number of tasks right from your computer. If you need to transfer funds between accounts, you can do it on the internet instead of waiting in a long line at the bank. You can also pay bills without having to write a check or waste a stamp. You can even setup your account to pay bills automatically each month. If you have a mobile device with access to the internet, you can also check your financial information on the go. Some banks will even send you mobile alerts regarding your banking information.

Security is the main reason more people do not use online banking. However, the idea that online banking is unsafe is actually a myth. Banking information protected by firewalls, encryption protocols, and more. You will need a username and password to access any of your information. Keep this information safe, and you shouldn’t have any problems. If you do encounter an issue, letting the bank know immediately can quickly solve the problem.

Banks actually want you to use online banking systems. It makes their job easier and more cost-efficient. When people do their banking online, less paper is needed and less employees are involved. That’s why they have tried to make online banking as simple and useful as possible. They even offer quality internet support from live people who can help you with all your banking needs.

Most banks offer online services for free. This makes it even more appealing to choose online banking for your financial needs. Check with your bank to see what they offer, or consider switching to a bank with better web-based services. The sooner you make the change, the sooner you can reap the many benefits of online banking.

 



By: Justin Mongiardo

About the Author:

CLEAVON