Signal for 9/07/2009 for: GBP/USDRecap of yesterday's events: Ok...so we had an interesting trading day yesterday with only sell signals triggered. At London open, price retraced back to the 1.6125 level before heading back down. We had a ranging market for most of the London session until price broke through the 1.6066 support and headed all the way down during the US open. There were good opportunities yesterday on the sell side. We had at least 4 different signals for a sell position, which ranged between 30-45 pips each until the big break which would have collected a nice 90 pips profit. Today's Signals: Ok let’s have a look at today’s levels: R3-1.6499
Possible Scenarios: We have been in an oversold condition for a couple of days now. Maybe market will retrace today or it may keep heading down, so we will monitor those following levels today and find a good opportunity to lock in some nice pips. Buy Signal: For a buy signal to be triggered, I will wait for the price to trade above the pivot point by London open. The pivot point for today’s session may act as a good support if price trades above that level due to some heavy cluster formations. If price trades above that level, I will allow price to break a minor resistance at 1.6077 before looking for a good buy entry. My target is set at 1.6125. I will exit all my positions at this level as we may encounter heavy resistance. I will look for another buy signal only if price breaks the 1.6140 level. My targets for this entry will be at 3 different levels namely 1.6180, 1.6205 and finally 1.6223 where price may reverse for the day as we will encounter massive resistance at this level. Always remember, those are simply possible targets 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 1.6000, where we have some good support, there may be a possibility that market may want to move further down. Once price breaks the 1.6000 level, I will wait for a good sell entry with first target at 1.5971, where we may encounter some support. If price breaks the 1.5971 level, I will start looking for another sell if our rule of entry is validated. My target from there is set at 1.5903. If market is strong on the downside (I presume it may be at this point) we may well see price heard all the way down to 1.5800. Remember, proper money management will be needed to maximize profit if this move does eventuate. 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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