Signal for 23/07/2009 for: GBP/USD

Here is a quick recap of the 21/07/09 session.

This pair had a downward movement on that particular day and none of our buy trades were triggered. No sell signals were posted on that particular day resulting in a no loss no gain day.

Today's Signals:

Ok lets have a look at our levels of concern for today 23/07/09:

R3-1.6753
R2-1.6628
R1-1.6558
Pivot Point-1.6434
S1-1.6363
S2-1.6239
S3-1.6169

Possible Scenarios:

Buy Signal:

For a buy to occur in today’s session, I will let price trade above pivot for the day. I will start looking for a valid buy entry only if price breaks the 1.6468 level. My first profit target from there is set at 1.6505. We may have another target at 1.6548 where we may encounter some good resistance. My last and final target is set at 1.6590.

If you are trying to head for those levels, money management will be crucial. Take partial profit each time profit targets are 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:

For a sell to occur, wait for price to trade below pivot of the day. Once price is below pivot by London open, wait for price to break 1.6410 where we have some support. After the break, I will start looking for a valid sell entry with first target set at 1.6374 where we may encounter some support.

My next target is set at 1.6338 where I feel price may reverse for the day.

Remember that proper money management will be needed to maximize profit and partial profit taking is crucial to be on the positive side.

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.

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