GBP/USD: Waiting for a Breakout

Trade Idea: 2011-2-10 1:52

GBP/USD 4-hour Chart

I see that a descending triangle has formed in the 4-hour chart of Cable. Because I’m awesome like you and finished the School of Pipsology, I know that a descending triangle is considered bearish and hints at a downside break. Also notice the “lower highs” in price? That’s a sign that the bears are really taking over while the bulls are barely holding on.

Despite my bearish bias, I’m not going to sell yet! That’s just silly impatient! I’m going to wait for a SOLID CANDLE CLOSE BELOW 1.6030 for confirmation and THEN short.

Now whether or not it breaks down the support level will largely depend on the BOE‘s monetary policy decision. Pip Diddy told me that as sure as he is that he will have a date on Valentine’s day, BOE Governor Mervyn King won’t be announcing an interest rate hike.

However, he warned me that our chaps in the U.K. may sound more hawkish than what the market expects. Consequently, that could send the pound higher.

When I saw that quite a handful of reports have beat expectations, I thought it would only be right to follow the old man’s advice. So for now, I’ll sit on the side lines and see how the pair reacts to the MPC interest rate decision!

Oh and before I forget! I finally applied for the assistant manager position and my interview is scheduled next week! Yahoo! But to be honest, I’m scared that I might make a fool of myself. What should I do?

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