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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May 2006

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Pick of the Day: GBP/USD

Posted 22:47 15 May 2006 | Comments

We have the UK CPI(m/m) coming out at 4:30 am EST. This is the monthly measure of inflation experienced by consumers. The consensus number is around 0.6% versus the previous number of 0.2%. Any surprise in this news report should cause high volatility in this pair, and hopefully we can capitalize on that. Cable is in a short term downtrend, surpassing the 50 SMA and the bouncing off the 100 SMA. I'm looking for a continued move downwards as we may be in a dollar correction, but of course I have an idea for both ways just to be prepared:

Long GBP/USD at 1.8895, stop at 1.8840, PT1 at 1.8910, PT2 at 1.8935

Short GBP/USD at 1.8745, stop at 1.8785, PT1 at 1.8730, PT2 at 1.8711

Good luck and good trading!