keep your 2+ longs. It may take months before it reaches that level but at least you are earning positive swaps. Just make sure you have enough margin to cover it while waiting. Last June 13, I, like you, had lots of short positions at 1.9400s and unfortunately, I had to pay the negative swaps. And there was a nerve-wracking time when pound price reached 2.0150 that my floating losses reached more than 24,000 dollars, almost 70% of my usable margin. From June 13 up to yesterday, I paid out a total of 2,200 pips in negative rollovers. But in that same period, I worked hard and earned more than 10,000 pips, netting almost 8,000 pips after those negative swap payments. So just make sure you have closed your 1.94 shorts and trade your way up to 2+. By that time those long positions would have earned you good positive swaps. Good luck!

Hi John

Do you know when the ssi will be posted today?

hi tacamonchi

thanks a lot for your advice. but my worry is, is it a long term down trend for cable in which case it may not come back for a few yrs. what do you think.

i cant agree more with you on the shorts. i was short from 1.94 and then loosing on carry also and it was frustrating.

Hi all! i've been looking at all the charts and analysis from the 'experts'
saying that the AUD and the NZD and the EUR and GBP should correct and bounce back at least 100 or so pips, but i just don't see this happaning.......... however for all those that are long at the moment i can offer you a sure fire way of reversing the current trend. Just offer to cover my loss and i'll short the USD, judging by my FX sucsess this'll see a huge reveresal and the usd will hit an all time low within a week!!!

So in order to be able to hedge your account, did you had to open a sub-account of your main account to be able to hedge? At least with my broker any opposing position will automatically cancel my initial position for the same amount of the new purchase. Is that what you are doing, opening a different account to be able to hedge the opposing position?

You have to have hedging enabled in your settings on the trading station if using FXCM

Just contacted my broker, Oanda and they mentioned that their platform does not offer buying the same pair in opposite direction. The alternative to hedging is by creating a sub-account and then purchase the pair in opposite direction that your main account and thus ability to hegde the pair.

On another note, with respect to the GBP and EUR sale off could it be that the large Europeans banks and hedfunds are not defending their currencies as most of them are on their summer brake? Could that be the reason that the rebound that we've been expecting hasn't taken place and that is because they are on a summer break?

This is just not making sence.... Fannie Mae just reported a $2.3 billion net loss and the Dollar gets stronger. It can not be because of the oil cost as oil went up yesterday and still the buck got stronger. I am still lost

I feel your pain FL, The problem with the GBP/USD right now is that no trader, technical nor fundamental knows what is going on because there is no technical or fundamental reason.

I like John G's attempt at an explanation earlier, that many large institutions were holding short USD positions, are now switching to USD longs now fearing that Europe, UK and the rest of the world are just as bad and the US will recover first (first in trouble will be the first to get out?).

To all the guys that have been arround for a while, have you seen anything like this before?

I think everyone is lost at the minute bud...Cable is now the lowest it has been since 2006!!! I wish i had held onto my Shorts from 201 now Grrr

I will hold this until 8600. I think it can go there. Jamie's latest count has confirmed this possibility too. MTD and LTD direction is down, which means the turning date is usually late and can be later than Aug 15, which makes it more possible to reach 8600.

There were a few guys on here that predicted the move below 190 iirc...not sure who though and i really cba reading through to find it...

Im staying out of the market until next week. Have a good weekend all

after having the wind knocked out of my sails on Tuesday, almost going bankrupt and ending a mega run on winning trades (45 i think it was) I have now recovered my losses and I am back to where I started, I am now on a 17 straight trade run and well and truely have my confidence back, funny old game this....but having said that I was trying to really make some big money, live by the sword die by the sword......

Take what you can and give nothing back.

I come from the mess of the credit markets where all the mess has been going on for sometime (2 years). In my twenty-three years in the credit markets I have never seen anything like this before.

I am more of a believer that although things are bad in the US and getting worse, elsewhere ie, in particular UK and Europe, we still depend more on credit than most other countries in the world, therefore the credit correction is far from over here in the USD. We are not done bullish with the EUR or the GBP yet. I believe that the rebound for GBP is coming probably next week as we can not ignore the EW. However long term bearish for the pair, bullish mid term.

We are still going to see some more major banks failure ie: Fannie or Freddie, WAMU and maybe BOA because of their purchase of Countrywide, and once they start becoming more evident we will switch back to some bullish in the GBP or the EUR. However I also believe that the pain in Europe is growing as well. However they do not have that many high profile institutions with so many deep problems. Therefore bullish to the GBP and EUR shall return soon.

How I am navigating and trying to make money?
I read what everyone is doing here in the forum and keep the fundamentals and technical analysis equally balanced in my mind. I can not do just one and not the other.

The pull back will happen probably next week.

My broker FXCM allows me to keep open opposing positions any time. However, I opted to open a different account simply because I did not like to see my follies- those pound/dollar short positions that kept on accumulating negative rollovers everyday-which depressed me everytime I saw them. In the active account, I actively traded other currency pairs but rarely made money on the pound/dollar longs. After the pound started declining from its 2.0150 high, I started shorting it from 9930. I considered it sweet revenge that I was earning pips from pound shorts to pay off my daily negative swaps while making money on other currency pairs.

After almost two months at it, my desire for "revenge," my daily objective of meeting those negative rollovers (especially during wednesdays at 3x) and the eventual decline of the pound, allowed me to clear all those nasty shorts at 9400, and netted me an 80% return on my active account. So upadastra, unlike me, you should be fine since you are assured of earning positve swaps every day and give or take a few months, we should see the pound go back at those levels.

But wouldn't you say that the credit and money market breakdowns are a global issue. Personally, I think it is a financial-specific issue rather than a country-specific issue; and London and New York are the capitals in that respect.

What's more, this is more at stake with the BoE's primary lending rate (at 5.00%) than the US's benchmark (2.00%). A return to cuts in the US would be destabilizing, but everything being equal, it would be far more threatening if the UK signaled the same.

How far do you think it would rebound? Former support?