Signal for 22/06/2009 for: GBP/USD

Recap of last week's events:

We are back for hopefully what would be a good week. Before going further in today’s analysis, here is a quick recap of last week’s events.

I was off trading last week, had a nice break but now we’re back to business.

So last week we saw the market lose and gain back 600pips at the end of the weeks trading session. Neither the buyers nor the sellers were in full control. However last week’s performance did bring in 107pips for the pound, not too bad considering we had only two trading days that week.

Just a quick note, I had another 2 lots running for GBP/USD, which closed out at break even.

Today's Signals

Ok lets have a look at today’s levels:

R3-1.6867
R2-1.6713
R1-1.6609
Pivot Point-1.6456
S1-1.6352
S2-1.6199
S3-1.6094

Possible scenarios:

The GBP/USD seems to be in an up trend at the moment; this may change later during the week as seen previously. The Pound seems undecided at this present moment to which direction it wants to go hence the constant up and down movement experienced last week. I will be looking for buy signals today taking into consideration that we have some heavy support at our daily pivot level which is 1.6456. Both the 4 hr and 1 hr charts points to what seems to be an up trend.

Price has been trading very closely to the 1.6456 level for the past 3 hours that the market has been open. If this level holds until the London open, we will be looking for a buy with first profit target at 1.6590.

Our second profit target will be set at 1.6720, please note that we may encounter some resistance at 1.6610 and 1.6660 before reaching the final target for the day. You may decide to exit half of your position at the first profit target and bring your stop loss to break-even and ride the rest.

Others may decide to exit all their position at the first profit target. Ultimately it is your decision to how many pips you are willing to make.

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)

Happy Trading.

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