Signal for 23/07/2009 for: GBP/USDRecap of yesterday’s session: We had a good day yesterday with most of our profit targets being met. Price did pull back later during the day to head back up again nearly reaching our final profit level (it felt short of 5 pips. However there were some good opportunities to profit from the upward move with a potential of making 80 pips in profit. Today's Signals: Ok lets have a look at our levels of concern for today 24/07/09: R3-1.6717 Possible Scenarios: I do feel that market may still head up today. However we will wait for the London open to decide what to do. 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 1.6528 level. This will have to be an aggressive buy set up with first profit target set at 1.6560 where we may encounter some heavy resistance. Exit your entire position at this level to maximize profit. Best-case scenario will be a break of 1.6570 level where a heavy cluster formation is present. If price does trade above that level start looking for a valid buy signal with target set at 1.6635. This will be the final target for the day as I feel the pair in question may run out of fuel once this point is reached. 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 trigger I will wait for a break of 1.6464 where we have some good support. Once the level is broken, start looking for a valid entry sell with profit target set at 1.6425. My next target is at 1.6376, but before reaching this level we may encounter some support at 1.6409. 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) Happy Trading.
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