GBP/USD Stabilized at 34EMA Wave Support

Most of today’s Forex AM talk focused around the GBP/USD since that was where the headlines and traders were focused. The cable while weak has set up a swing buy opportunity on the daily and I walk through the set up on today’s show.

It’s an interesting look at what I call a “one thing leads to another” set up where the short-term time frames were bearish (very bearish!) yet the Directional Bias of the daily was bullish and so the negative fundamentals drove the pair lower to eventual support with the daily’s 34EMA Wave.

There’s no reason the short-term negativity couldn’t be played especially when you look at the five, 15, and 30-minute time frames that went red on the GRaB candles long before the 4:30am EST UK GDP release. But do not neglect the dominant psychology of the daily which while it’s certainly correcting, is still bullish.

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6 comments

  1. forexhood

    I beg to differ. There’s a bearish butterfly playing out on the 4hr that’s very bearish to me. Fundamental news is just white noise to me.

    Reply
  2. Queen Cleopiptra

    I don’t necessarily disagree with you regarding the 240 – and I agree with you 100% regarding fundamentals. (Well perhaps 99% since I think we must respect the impact on the psychology of the market fundamentals can create.). I also have a bearish signal on my 240-minute charts as the 89 period EMA is being tested/broken. It looks for now that the intraday range between 5834 and 5746 will be where the battle will be fought for the next leg of the cable’s movement. I’ll be watching the daily closely at the 34 period EMA close and the 50 period SMA.

    Reply
  3. forexhood

    I beg to differ. There’s a bearish butterfly playing out on the 4hr that’s very bearish to me. Fundamental news is just white noise to me.

    Reply
  4. Queen Cleopiptra

    I don’t necessarily disagree with you regarding the 240 – and I agree with you 100% regarding fundamentals. (Well perhaps 99% since I think we must respect the impact on the psychology of the market fundamentals can create.). I also have a bearish signal on my 240-minute charts as the 89 period EMA is being tested/broken. It looks for now that the intraday range between 5834 and 5746 will be where the battle will be fought for the next leg of the cable’s movement. I’ll be watching the daily closely at the 34 period EMA close and the 50 period SMA.

    Reply

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