Wednesday, May 16, 2012

GBP/USD Update

GBP/USD on 16-May-2012

Something interesting is happening, timing is almost there.
With the euro turmoil, Greece election, US JPMorgan chase 2 billion trading loss…

We see USD shooting up like crazy..

And so in line with non so good economic data release from the Great Britain side…

Market plunged and now trading at 50% Fibonacci retracement level.
Check day chart below.

My method is easy.
Fibonacci retracement, 50%, look for a strong reversal signal, or previous group support.

Here I identified two levels…
Current 1.5930 (red triangle box)
Next support 1.5810 (purple line)

I hope market do not need to fall there (1.5810) but start to consolidate from today, trade sideways between 1.5900 – 1.6050 (150 pips) and breakup to next high next week.
I believe market will repeat the same cycle, and so, for the remaining of the week, I reckon market to consolidate, bias up.

I rather not enter any trade, but hope to long (now), or initiate Long next Monday (save some overnight interest, save myself from weekend news) and lets ride.

Will post if trade was done.

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