Signal for 28/07/2009 for: GBP/USDRecap of yesterday’s session: We had a quite London session yesterday making it hard to make some pips. Price however reacted well to the levels given yesterday with a potential of making around 40 pips profit on the upside. Our second target was nearly met before price reversed and headed down for the day. Today's Signals: Ok lets have a look at our levels of concern for today 28/07/09: R3-1.6687 Possible Scenarios: My view is that price may head up today, we will wait for the London open before deciding on the next move. Buy Signal Pivot point is acting as a good support for price today due to cluster formation of some major Moving Averages on different time frames. For a buy to occur in today’s session, I will let price trade above pivot for the day. My level of concern here is 1.6505. Once this level is broken, we may see price head up temporarily. I will start looking for a valid buy entry with profit target set at 1.6555 and second target set 1.6605, which happens to be one of the resistance level for the day. Note that we may encounter some resistance on the way up to those levels at around 1.6540 and 1.6570 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.OR : You may use your own strategy and use those levels as reference to enter and exit trades Sell Signal For a sell to be triggered, wait for price to trade below pivot for the day. Once price is below pivot point, wait for price to break the 1.6435 level before starting to look for a valid sell entry. My target from there is set at 1.6383. We may encounter some support at 1.6408 on the way down. This will be my only target if a sell occurred as I feel that market may not have enough fuel to head further down. 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 pointsPSS – Wait for London open to start looking for trades. Happy Trading. Back to: Free Forex Signals Page Back to: Forex Trading Homepage
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