Signal for 2/07/2009 for: GBP/USDRecap of yesterday's events: Yesterday we had some good action, unfortunately none of our buy signals were triggered as price was well below the pivot point of the day, though it retested that level at US open. We however had a good opportunity at the 1.6460 level where a valid sell signal was triggered which hit the first profit target. This trade made a nice 40 pips profit. Unfortunately, this was as far as we would go with the pound, which reversed its course of action to head more than 100 pips to the upside and retest the pivot point of the day. Thus, at this rate, there is heavy resistance at the 1.6550 level with some good cluster formation. This will be a crucial point in today’s session. Today's Signals: Ok lets have a look at today’s level: R3-1.6714
Possible scenarios: The GBP/USD had a move to the upside yesterday testing the pivot point. At this point in time, 1.6550 level seems to be acting as a major resistance level. I will be closely monitoring this level today. Buy Signal: An aggressive buy signal will be triggered if price trades above pivot point by London session open. My profit target for an aggressive buy is set at 1.6526. To be more conservative, there is major resistance at 1.6550 level which is around 80 pips away from the pivot point for the day. I will wait for the London session to open and if price is still above pivot point, I will preferably wait for a break of the 1.6550 level and start looking for a buy signal. From here, there may be a first profit taking at 1.6590 where there is some resistance and a second profit target at 1.6628. I will take most if not all my profit at this level as there is some heavy cluster formation acting as good resistance. If price does break that level, only then will I start looking for another buy signal. My profit target at this point will be at 1.6680. Please always remember, 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
If by London open, price is trading below pivot point and 1.6457, there may be a good opportunity for a sell signal. I will start looking for a good entry point with first profit target set at 1.6410. Price may encounter some good support at this level, so I may be exiting a large portion of my position at this point. There is another target at 1.6364 but at this point I will wait for a break of 1.6400 before deciding to jump in for a move downwards. 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) You may decide to use your own strategies 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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