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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September 2006

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Pick of the Day: GBP/USD

Posted 20:39 05 September 2006 | Comments

After a strong move in GBP/USD for the last day or so, the pair is now in consolidation mode - it's now trading in a 20 pip range, approximately. Now traders are potentially waiting for the numbers out of the UK at 4:30 am EST, and in these types of situations I like to play a potential breakout opportunity. I mostly like a short play here because of the seemingly new trend, but we'll have a long play ready in case the market wants to prove us wrong. Also, please be aware of US economic numbers at 8:30 am EST and 10:00 am EST. We should see a stir in the markets, especially with the quarterly Nonfarm Productivity and the ISM Non-Manufacturing Indexes. So, here it goes:

Short GBP/USD at 1.8920, stop at 1.8940, pt1 at 1.8900, pt2 at 1.8860

Long GBP/USD at 1.8960, stop at 1.8940, pt1 at 1.8975, pt2 at 1.9020