Thursday, August 20, 2009

GBP/USD May 22nd

The rate is trading @ 1.5870; yesterday High 1.5896; low 1.5516; close @ 1.5853;
In light of yesterday correction to 1.5510 area around 70% of the bullish movement of the day before, I was expecting the pair to move at least to 1.5980-1.6000 area; this didn't happened; so today I will play on correction and major trend movement; I think that we should experiment at least a correction to area 1.5780-1.5800 before a movement vs area 1.6000; I see it to risky to bet on a continuation on the bullish side, since the fail yesterday to perform area 1.600 may bring to a major correction of the main trend;
Here are some support and resistance:
R3 1.6515; R2 1.6135; R1 1.5994; S1 1.5614; S2 1.5375; S3 1.4995;

here is my trading plan;
I will sell 2x unit of GBP/USD right now @ 1.5870; stop loss @ 1.5910;
I will take profit 1.5780-1.5800 area;
and than I will go long 2x unit where I close the short posiition;
stop loss 1.5695;
take profit close to 1.6000;

have a good trading day

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