About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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August 2006

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Pick of the Day: GBP/USD

Posted 20:57 07 August 2006 | Comments

Big story of the week is going to be tomorrow at 2:15 pm EST when the FOMC releases their decision on interest rates. It seems like all have been hearing from “experts” lately is that the Fed will pause, and possibly leave the door open for future hikes. The alternate scenario would be a rate hike and a neutral statement afterwards. Honestly, I couldn’t tell you what will transpire tomorrow, I don’t think anyone can, but I think it’s a great opportunity to catch a few breakout pips as traders sit and wait for this decision. So, we will look to set our long and short entry orders right past the R2 and S2 lines with tight stops. Our targets will be the major price levels. Here are a couple of trade ideas:

Long GBP/USD at 1.9160, stop at 1.9140, pt1 at 1.9200, pt2 at 1.9250

Short GBP/USD at 1.8990, stop at 1.9010, pt1 at 1.8950, pt2 at 1.8900