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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Pick of the Day: GBP/USD

Posted 23:46 06 July 2006 | Comments

It's that time of the month again - US Non-farm Payroll report!!!! Oh yeah! Once a month we get to see this beast of a market mover, and hopefully we get to catch some pips.

This month's consensus for the June report has seen a wide range from 50K to 300K jobs added, and traders were especially rocked when the ADP report came out with an estimate of about 368K jobs. Right now the consensus for the government report is at about 175K. It may be a good possibility that we will see the actual number very different from consensus, but the question is "how far off will it be?"

We don't know, and traders will be on the sidelines waiting patiently until 8:30 am EST Friday morning. As always, I say stay away from trading this report because of the whipsaw action that accompanies it, but for those who want to jump head first into it here are a couple of trade ideas:

Long GBP/USD at 1.8418, stop at 1.8378, pt1 at 1.8446, pt2 at 1.8483

Short GBP/USD at 1.8321, stop at 1.8361, pt1 at 1.8300, pt2 at 1.8260