MP FOREX ADVISORY

The GBP/USD and the EUR/USD both trended upwards last week in a very gradual and in a very choppy and somewhat erratic manner.  We saw more false breakouts in our model last week than we have ever seen with our breakout model.  It appears that there is substantial, although discreet, market manipulation, which has been keeping the EUR/USD at artifically higher levels and preventing it from a continued decline, which would be supported by the fundamentals.  Such efforts almost never succeed as currency pairs will eventually yield to the natural forces of the market.  However, central bank manipulation certainly can wreak havoc with technical trading models as explosive breakouts can occur at unusual spots that leaves traders relying on technical tools of analysis somewhat befuddled.  We have been spending quite a bit of time working on several enhancements to our model, which primarily are focused on dramatically improving our risk-reward ratio.  We believe that such enhancements should allow us to post strong gains even if we have weeks with lower than normal success rate.  We will begin utilizing these enhancements beginning this week.  We will keep you posted.

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