GBP/USD Analysis
GBP/USD has been rising since the market re-opened. My stochastic RSI is starting to drop, the RSI is stagnant at 60, and the EMAs are both still too close to call. I have a feeling it is going to drop, but the indicators are saying no.
By reading the stochastic at 1 hour, I can see how it has gone up a lot, dropped a little, gone up a lot, dropped a little, gone up a lot, dropped a little but more recently plateaued. Thats another indicator of it dropping soon, I think. Reading the 1 day graph, it hasn't been this high since the beginning of June. A spike seemed to start during early April and has lasted thus far. Prior to this 4 month spike, it was not this high since September. It can't possibly stay this high for much longer.
I believe as a long term investment, a large short of GBP/USD would be in my best interests. This would most likely take around a month to pay off.
I like short term more however, so I just purchased 2,000 units at 1.86804 with a take profit at 1.865 and stop loss at 1.88. The stop loss is ridiculously high because I think it does have a possibility of another spike but will lower itself down to my take profit within a few days.
USD/JPY Analysis
The USD hasn't been this weak since July 12. The Yen spiked on July 19th at 117.858 and since then has dropped to 114.633. The RSI spiked lately, coming up around 40 points in one day and the EMAs have crossed a dozen times in the past 12 hours. It looks to be too close to call statistically, however my gut is saying to go long and expect a payoff in 5 days. I'm staying out of this one.
*Take all of this with a grain of salt, I've been working FOREX for about 3 days and so far made about 1% of my balance.