Signal for 23/06/2009 for: GBP/USDYesterday's Profit/Loss: +80 pips Recap of yesterday's events: Before we get going with today’s levels, let’s go over what happened in yesterday’s trading session. Well, our levels were not quite met and eventually no buy were triggered. Our level of 1.6456 which turned out to be the pivot point of yesterday’s session did hold until the London open to finally drop by nearly 100 pips in the opposite direction. Price did manage to break the l.6456 level to the upside and did make a retest but the support level failed to hold price above. Price then headed all the way down for the day. After the events of yesterday, I decided to go back to my original analysis and give you two possibilities for the day. So there will be both buy and sell, however those buys and sells will be taken only if the following rules outlined will be met. I did take a sell trade yesterday after seeing the market react to the levels given for yesterday’s trading session. Today's signals: Ok lets have a look at today’s levels: R3-1.6658 Possible scenarios: The GBP/USD seems to be heading back down at the moment. In regards to the spread (pivot levels) on the level of today’s session I feel there is more room for a down move in price. Both the 4 hr and 1 hr charts point to a bearish market at the present moment. However, due to the markets up and down movement, I will be giving you two possible scenarios. That’s exactly how I trade, you will just need to follow the rules ;). 1- Buy Signal At the moment of writing this article, price was trading around 80 pips away from the pivot point. The 1.6330 level here will act both as a good support level if price is trading above that level or a good resistance level if price trades below that level. A buy will be triggered if price heads back up and start trading above the pivot point. We have some cluster formation at this level too so, if this level is broken and price trades above we may see price head up above 1.6460. I won’t take any trades yet, my confirmation level here will be the break of 1.6460. Only then will I start looking for a buy signal. 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. Thus if all those criteria are met we may see price move all the way to our profit target which is set at 1.6580. We have heavy cluster formation at this level making it a strong resistance level for the day. 2- Sell Signal My view for this week after yesterday’s session tells me that price may keep on heading down today. The 1.6330 level will be acting as a good resistance level if price trades below that level. Thus if at the London open, this level holds, we may see price head further down for the day. So I will start looking for a sell if price trades below 1.6330, with profit target set at 1.6200. We may encounter some support at 1.6270 but I believe at this point if market is bearish for the week, we will easily break through that level and reach our profit target. We have a second profit target for GBP/USD set at 1.6090. Proper money management will be required here if you take into consideration the 2nd profit set for the day. 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)
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