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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November 2006

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Pick of the Day: GBP/USD

Posted 11:59 15 November 2006 | Comments

For tonight’s pick, we’re gonna hop on this wild ride called “Cable” and ride it down as the Greenback has been gaining ground against it as of late. We have a couple of big data reports coming up today with GBP Retail Sales number and US CPI data. Now, the GBP Retail sales number is forecasted to grow at 0.2%, but I think we may see a weaker number, especially with all of the weak data out of the UK recently. Also, US CPI will be released at 8:30 am EST, and with the Fed still concerned about inflation, this report will be closely watched and we may see a strong market reaction if the core CPI number is higher than expected. Going with these ideas and being that GBP/USD has been in a monster downtrend, I think a short play on GBP/USD is a great play for tonight. Here we go:

Short GBP/USD at 1.8875 , stop at 1.8900, pt1 at 1.8850, pt2 at 1.8825

Good luck and good trading!