Wednesday, February 24, 2010
GBP/USD Shorting Opportunity
The GBP/USD has traded very heavy compared to the other majors and I see a good shorting opportunity. The rise from the 1.5350 area looks like a correction as it's a 3 wave affair. In order to confirm this, and eliminate the possibility that a flat correction is ending, we need to see a break below 1.5394. So on a break below that level, I want to get short because it probably means the downtrend is resuming. What's also nice is that the previous swing high is less than 100 pips away at 1.5476.
So my trade is to place a sell stop to get short at 1.5390. If this trade executes, I want to have a protective buy stop in place at 1.5485.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.