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Close Open Orders: 2010-07-08 21:50

PoD Chart

Hmm, it looks like GBPUSD is ranging now, which means I need to cancel my open orders. The pair seems to have found some serious support at 1.5100 and probably won’t go as low as my entry at 1.5000. Besides, the pair already made a new high yesterday, invalidating my trade idea.

It looks like things still ain’t working out so well between me and GBPUSD. Oh well, I’ll just hunt for better trade ideas next week!

Trade Idea: 2010-07-05 22:41

PoD Chart

With the absence of my favorite series Glee, there was nothing good on cable today so I decided to flip through the currency charts and watch the nice channel on Cable! Get it? Cable television and Cable pair? Bah, nevermind.

Anyway… Notice how the pair has been bouncing up and down inside that rising channel for almost a month now? Well, I’m hoping it’d still hold for another bounce because I’m looking to go long at the bottom of the channel!

The stochastics are still crawling downwards, which means that the price could head much lower. I drew up some Fibs and noticed that the 61.8% retracement level lines up with the bottom of the channel and is close to the psychological 1.5000 handle.

I set my entry order in that area, with my stop outside the channel. I decided to put just a 60-pip stop on this one, half of GBPUSD’s average daily range, since I’d want to jump ship in case the channel breaks. A wise old man (I think it was Pip Diddy) told me that the more times the channel is tested, the higher the chances that it could break.

I placed one profit target at the middle of the channel since the pair could find some resistance there. Then, I put my second profit target at the top of the channel, right at the psychological 1.5300 mark.

Today’s economic schedule shows that the UK is set to release the Nationwide consumer confidence report, which could reveal that sentiment dipped from 65 to 64 in June. This report could push the pair down, especially if the actual figure comes in below consensus.

Meanwhile, the US will release its ISM non-manufacturing PMI at 2:00 pm GMT. The index is expected to slide a few notches from 55.4 to 55.1 in June. A weaker than expected figure would suggest that Uncle Sam’s services industry is unable to sustain its expansion, which could then be bearish for the Greenback.

Here’s what I plan to do:

Long GBPUSD at 1.5010, stop at 1.4950, pt1 at 1.5100, pt2 at 1.5300. As usual, I’m gonna risk 1% of my account on this trade.

Don’t forget to hit me up on!

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