Signal for 27/07/2009 for: GBP/USDRecap of last week’s session: Net Profits: 103 pips We had a strong upward movement in the second half of last week. Not much profit was made in the previous week’s trading this particular pair mainly due to the way the market reacted in the London session..
Today’s Signals: Our levels of concern for today 27.07.09 are as follows: R3-158.554 Possible Scenarios: The market seems bearish for now. Market has been heading down for the past 2 days. We still have some room on the downside for a sell trigger however due to the fall in price we may experience an up move today. We will wait for the London open to decide what to do next. Buy Signal: For a buy signal to occur, I will wait for price to trade above pivot by London open. Pivot point is acting as a good support level at this point in time due to some cluster formations. Once price trade above pivot point for the day we may have an aggressive buy set up if a valid entry presents itself. My profit target is set at 156.44 and second target at 156.75. I will exit my entire position at this level to maximize profit. If price breaks 156.85 level, we may have another buy set up. I will wait for a valid entry point with target set at 157.50 where I will take out my entire position. We may encounter some resistance at 157.24. 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. Sell Signal: We have heavy resistance at around pivot point today. If price is still below this level by London open I will start looking for a valid sell entry. I will wait for price to break 155.50 level and look for a good set up with profit target set at 154.70. We may encounter some support on the way down at 154.95 . My last target is set at 154.30. We may encounter some support at 154.60. You may want to manage your trade and take some of your position at that level and bring stop to break-even. Remember that proper money management will be needed to maximize 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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