Signal for 21/07/2009 for: GBP/USDRecap of yesterday’s session: There was potential of making 70+ pips profit following yesterday’s analysis. Bias is still up for today, however we may experience a retrace before market heads up again. The 4-hour chart seems to be in an overbought condition at this stage. Let’s wait and see what the London open has is store for us. Today's Signals: Ok lets have a look at our levels of concern for today 21/07/09: R3-1.686 Possible Scenarios: At the time of writing this analysis, price was trading above pivot for the day. Price may head down and trade below pivot before London open, but I believe that will be short lived and that price will head up back again. If I am right, level of concern will be around the 1.6550 regions. Buy Signal: As I said before price may retrace at this point before heading up. The level am looking at where price may retrace is the 1.6475 level which is our pivot level for the day. This level is acting as a good support for price. If price does retrace at this level and start heading back up then we may have some confirmation that price wants to head further up. However, I will wait for price to trade above the 1.6505 level before starting to look for a valid buy. My target is set at 1.6550 if a valid entry is triggered. I will exit my entire position at this level and wait for price to break the 1.6550 level to look for another valid buy entry. My target is set at 1.6610 at this point, where we have some heavy cluster formation. On the way up to that level we may encounter some resistance around 1.6580 level. You may want to exit some of your position at this level and bring your stop to break-even and let the remaining of your position run. My last profit target is at 1.6685. If you are trying to head for those levels, money management will be crucial. Take partial profit each time the profit target is reached and bring your stop loss to break-even. Please 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 No sell signals today. 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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