Trading The British Pound The Hawkeye Way

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Trading The British Pound The Hawkeye Way

In today’s issue of our newsletter, I’ll show how the Hawkeye indicators can be used for trading the British pound against the US dollar.

Let’s begin by looking at the monthly chart. As you can see, the monthly trend dots have gone red, as illustrated by the red arrow I’ve placed on the chart. You’ll also note that the volume indicators and the heatmap are all red.

GBPUSD Monthly Chart

Now, let’s look at the last pivot low. That’s indicated by the yellow dot and horizontal line. If prices break below that, it indicates we will be in a serious down trend.

Looking back to May of 2010, we see the previous low was at 14229. So, if this current trend were to close down through the current pivot low, we very well may be headed down towards 14229.

Now, let’s move on to the weekly chart.

GBPUSD Weekly Chart

As you can see, the weekly chart has broken down from where I’ve placed the red arrow. You can see that prices have closed down below the pivot low point.

Also, notice the evenness between the trend dots in this down trend. This indicates there is substantial momentum to the down side.

Finally, on the daily chart, you can see we’ve just now broken down below the Hawkeye pivot low (the yellow dot with the horizontal lines extending out).

GBPUSD Daily Chart

We see that the GBP held prices within the pivot area for a few days. However, on Thursday, the 22nd of January, we saw the price close down under the pivot, and so we’re now in commencement of a re-entry to the downside (You’ll also note that the Hawkeye Roadkill indicator put in an aggressive entry to the downside).

So, the Hawkeye indicators are telling us that it looks like serious weakness for the GPB. I would expect it to continue on down now, and certainly, given all the evidence we see from the Hawkeye indicators, it’s a great shorting opportunity.

But, make sure you do not go long on this if you’re trading the faster time frames. Only trade in the direction of the slower time frames!

So, I hope you’ve enjoyed seeing how we use the Hawkeye Pivots. Understanding price action with the underlying Volume is the true advantage in trading, and the Hawkeye Pivots is a unique tool that helps us put it all together.

We teach this and many other methods in our live training room held every Wednesday. Click this link for more information or to join us in class.

Please contact us at [email protected] for any questions you might have about using Hawkeye Indicators in your trading!

Until next time . .

Good Trading!

Nigel Hawkes

[The red arrows are for illustration only and do not form part of the software]

2 Replies to “Trading The British Pound The Hawkeye Way”

  1. Do you think the recent rally of GBP has now reversed this observation or do I need to wait until it hits the Daily crash barrier at 1.54?

    1. It is not fully reversed until verified by closing beyond the Crash Barrier. Many times, price will correct back to the stops, pause, then continue with the trend. Let the price answer this question for you. We teach that we hold the trend until stopped out.