Monday morning is always a nerve-wracking day on the forex markets. Specially true today since nothing seems to have been resolved in the US congress. So I’m holding my breath on where the dollar will go.

Is it good news that the UK government is bailing out Bradford and Bingley and a Spanish bank is swooping on the best assets? Not according to market reaction, with both the GBP and the EUR down.

I’m trading both GBPUSD and EURUSD but short on latter and long on the former in an attempt to hedge the market direction. These positions I try to profit from over a week while fishing on an intra-day basis.

Both trends fell off a precipice on Friday, dropping around 400 pips each. I’m trying to buy an open position on GBPUSD as it hits the bottom but have failed to do so 3 times. Think it’s time to withdraw for today to wait and see if a reasonably long (more than an hour) trend sets in. At the moment it is doing what I call ‘stepping down’. The 5 minute graph is literally forming stairs. So nothing to be gained in buying there.

The EURUSD cable is ranging in a narrow band so possibly a little profit in selling very short. Sell at around 1.4380. BE SURE TO LIMIT LOSS AT 30 pips.

I am having to sit on the platform view because all the market uncertainty makes the spreads offered by my platform a bit unpredictable too.  I’m buying and selling manually rather than automatically because they are taking their profit earlier with a wider spread.