Signal for 7/07/2009 for: GBP/USDRecap of yesterday's events: The GBP/USD price moved full force to the downside. Our entire profit targets were hit with a potential of making around 100 pips in profit if trailed properly. I will admit that it was a fairly tricky move yesterday as price kept on heading down as soon as the London market opened. I got 42 pips profit out the market after finding a good entry point. At the moment of writing this analysis, the market nearly got back all the pips lost in the previous day’s session. Today's Signals: Ok lets have a look at today’s levels: R3-1.6623
Possible scenarios:
Buy Signal: For a buy signal to be triggered, I will wait for the price to trade above pivot point by London open. Pivot point is just above the 1.6230 level which is acting as a strong support level. Thus if price is above these levels, market may head up. I will start looking for a valid entry if price trades above the 1.6282 level. If all the conditions are met for a buy, my first target is set at 1.6312 where we have some good resistance. I will exit half of my position at this level and let the rest run to 1.6360, which I believe may be a second profit target. We have some good resistance at the 1.6390 level. If this level is broken we may start looking for a good entry signal as price may head to the next profit target set at 1.6450. 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. Sell Signal:
If by London open, price is trading below pivot point and 1.6230, where we have heavy cluster formation, there may be a possibility that market may move down. I will start looking for a good entry point after the break of 1.6205 level. My first profit target is set at 1.6143. I will exit all my position at this point. I will wait for a break of 1.6125 before looking for another sell entry with possible target set at 1.6074. 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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