Signal for 12/06/2009 for: GBP/USD

Ok...so let's recap how we did yesterday.

This pair did a nice move up couple of hours before the European session and headed to the first profit target that was set. It then turned back to head down for the first 2 hours of the London session.

I hate to admit it but I went against my own analysis in this trade and entered the market before the break of the confirmation level.

Well it was definitely a bad idea as the market did get me out as you can see above in the diagram I posted. I hate taking a loss but that’s what happens when you go against your own rules.

However, the entire profit targets that I said would be hit…did hit. The market was very strong and headed all the way to the 1.6600 level. I got out a bit early though, just thought it was a nice profit. As you can see I added an extra 2 lot on the GBP/USD to make up for the loss I took.

Today's Signal

So...It has been another good week for GBP/USD, it seems all the confusion in the market is driving the dollar down.

Here are the daily levels for 12.06.09:

R3-1.6966
R2-1.6793
R1-1.6681
Pivot Point-1.6509
S1-1.6397
S2-1.6225
S3-1.6113

The pound has seen good gains this week. It has been averaging around 200 pips per day.

Possible Scenarios:

End of the week is always a bit tricky, again no sell today only buys.

The 1.6590 level is acting as a good support level. I feel that market may move downwards but its just a speculation at this point. Our next support line is around the 1.6500 level which is again not too far from the pivot point. We have a lot of cluster formation around that level making it another good support level.

We may see price trading between those two levels today. If for the first hour of the London session price trades above 1.6590, then start looking for a buy signal. We will have our first profit target at 1.6680. Our next possible target will be 1.6790.

Please be careful on Fridays in taking those trades, as market is usually slow. Wait until the open of the London session today to see how price reacts to those levels.

Happy Trading.

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