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.

Read First: My Trading Framework!!

Del.icio.us Bookmark

Technorati Favorite

Latest Posts

June 2006

S	M	T	W	T	F	S
				1	2	3
4	5	6	7	8	9	10
11	12	13	14	15	16	17
18	19	20	21	22	23	24
25	26	27	28	29	30

Pick of the Day: GBP/USD

Posted 22:22 12 June 2006 | Comments

We have a big week for the USD starting with tomorrow morning at 8:30 am EST. US Producer Price Index and Retail Sales will be released tomorrow morning, along with comments from Fed Chairman Bernanke.

It's been all about inflation lately for the Fed, and the numbers we will see tomorrow and Wednesday may help or hurt the possibility of an interest rate hike at the end of June. Any surprise number or a change of heart from Big Ben should cause quite a stir in the markets tomorrow morning, and we'll see if we can take advantage of that. Now, we have UK CPI tomorrow morning (4:30 am EST) before the reports, so I will wait until 7:00 am EST before I enter my orders.

If the morning UK report has caused the pair to move out of the range of entry orders, then no orders will be placed. We may possibly see quick movement after the release, so I will set tight stops and profit targets.

Long GBP/USD at 1.8480, stop at 1.8450, pt1 at 1.8495, pt2 at 1.8510

Short GBP/USD at 1.8369, stop at 1.8405, pt1 at 1.8359, pt2 at 1.8340

Good luck and good trading!