question about correlation

[bigjoe79]

do GBPUSD and GBPJPY move pretty much the same? if we are trading swings does this matter as much? they dont move pip for pip do they? reason im asking is im long on GBPJPY with a target of 173.000 and looks like GBPUSD is going to go short! im not going to trade them at same time im just wondering if i should close the long position i have on GBPJPY?
i would be holding on if i hadnt seen the GBPUSD, now im confused lol! :?

 

[robert]

Try this

http://fxtrade.oanda.com/analysis/currency-correlation

Just click on the pair you want to see. GBPJPY to GBPUSD, not so much hourly, but closely correlated a year out, so depends on you time frame. I take all signals and depend on my stop loss to get me out if one goes bad while I keep the good ones long as I can.

 

[bigjoe79]

Hey thanks for the reply! Yeh looks like its sort of similar, more so longer term. Bit awkward. Probably looking at weekly correlation im guessing using daily charts. Just looking at the chart i can see some of the swings look the same but when GBPJPY starts trending it looks a lot more stable. I guess with experience will be the best indicator!