Signal for 17/07/2009 for: GBP/USDRecap of yesterday’s session: Well we had no trades yesterday mainly due to the fact that both of my PCs were down. lesson learnt: never install a dodgy antivirus program. However, it may have been a blessing in disguise as market was very slow yesterday and I was most likely not going to enter any trades. We had a great day on Wednesday, with price heading all the way up to 1.6450 as predicted. According to the trades, there was a potential of making a nice 117 pips profit. Price did reverse at around the 1.6480 level and headed down for the day. Well to tell you the truth I won’t be trading today mainly due to the fact that I hate trading on Fridays and also considering the price action of yesterday which leads me to believe that we may have a ranging market today too. If any trade is triggered today, a conservative approach should be followed due to low trading volume on Fridays. Today's Signals: Ok lets have a look at today’s level: R3-1.6621
Possible Scenarios:
Buy Signal: We have some good support at 1.6404 at the time of writing this analysis. Price is trading below pivot for the day where we also have some good cluster formations. For a buy today we will wait for price to trade above the pivot point, if it does we may have some good support at this level. However, I will wait for a break of 1.6450 before looking for a valid buy entry. My first target is set at 1.6490 where we have some support. I will exit my entire position at this level and wait for a break of 1.6505 before looking for another entry. If a valid set up presents it-self my next target is set at 1.6550. We may encounter some resistance on the way up. I expect market to be slow today thus it may take a while before market reaches its target if a valid buy is triggered. Please remember that those are simply possible target where price may head up due to heavy cluster formations and analysis. This is not 100% accurate, no system is. Take profit each time you reach a certain level and bring your stop to break even. Note: Wait for a retest with 20EMA, 50SMA all heading up. Make sure that the 200SMA is not in the way when price is heading up as this may act as a strong resistance. Sell Signal: Market will be quite tricky today, I am a bit reluctant to take up any sell trades but after the strong up move in recent days, price may decide to head down. At the time of analysis, price was well below pivot for the day. To be of the safe side I will wait for price to break 1.6363 before looking for a good sell entry. My only target from there is set at 1.6314 as I feel price will not move further than this point. Remember that proper money management will be needed to maximize profit. Wait for retest of the levels given once broken or until a bullish candle is formed after the retrace (preferably on 15 mins chart making sure that the 20EMA and 50SMA obeys the rule of entry) PS – You may decide to use your own strategy and use those levels as entry and exit points Happy Trading. Back to: Free Forex Signals Page Back to: Forex Trading Homepage
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