Signal for 26/06/2009 for: GBP/USDRecap of yesterday's events: We had a good fall in the market yesterday hitting two of our profit target. The third profit target was not met and I exited my trade due to the formation of an inverted hammer candlestick on the 1HR chart, which I assumed at that time would turn price to the upside. My prediction was right as price did reverse nicely to head back up for the rest of the day.
Here is a table shot of the trade I entered yesterday 25.06.09:
Today's Signals: Ok lets have a look at today’s target levels: R3-1.6716 Possible scenarios The GBP/USD is in a somewhat consolidation phase at the moment. Thus making price head up and down continuously without a predictable trend. However, using the analysis given you can still make some decent profits though being in a ranging market. Buy Signal: We have good resistance at 1.6385 level which is above our pivot point for the day. After the big up move in price yesterday, I expect price to retrace around 1.6385 level. At this point, if indicators are pointing for a move up at the London open, our first profit target is set at 1.6459 where we have some good resistance with heavy cluster formation. Note: If you are the conservative type, wait for a break of 1.6370 level to start looking for a good entry point for a buy. Our next profit target is set at 1.6550 and finally the last target is at 1.6595. Please always 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. OR : You may use your our strategy and use those levels as reference to enter and exit trades Sell Signal: For a sell to occur, I will wait for price to trade below pivot point for the day. We have some good support at pivot point today. Thus a break of that level may see price head down during the London session. I however feel price may head up today, so some care should be taken here if a sell is taken. My stop will be fairly tight today if I decide to enter a sell signal. My profit target will be somewhat tight again. The first target will be at 1.6316, our second target is set at 1.6280 and the final target is 1.6250. If you want to be more conservative, wait for a break of 1.6314 level before looking for a sell signal with the following profit taking as stated above. Please remember that, proper money management will be required here to maximize your 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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