As a newbie to forex I have a question open to anyone with thoughts on the matter;
I've noticed that up until the end of last year EURUSD and GBPUSD shared a fairly close correlation with each other. Since the beginning of this year however they seem to have fallen out like a pair of moody siblings! Is it normal for them to flip in and out of a loose correlation? Is there an increased tendency for corrections towards correlation when they diverge? At the moment I have an open long trade on the Fibre and am considering a short on Cable if it shows signs of resuming its downtrend (both through daily charts) but are simultaneous short and long positions on the Fibre and Cable to be avoided??
Any wisdom, thoughts, musings etc gratefully received.
Many thanks - green pips and trade winds!!