Hey Guys,
Here is this weeks analysis. Sorry it’s a little late I was very busy this weekend. GBP/JPY has been boring lately so I want to try something new. I am going to start trading GBP/USD on a trial basis. This means I will only be trading a small portion of my normal position. Since these pairs are on trial I do not want to risk as much as I would on GBP/JPY
Do not take any of these trades unless you have downloaded and read the NEW 2010 edition free e-Book explaining my method.
These are all scalp lines therefore the target and stop for all of them is 50 pips. However, that is my target and while I suggest you aim for no more than 50 pips you could adopt some other strategies to maximize gains. For example you could close out half you position at 50 pips and move your stop to break even. This strategy is discussed in the free e-Book above.
I trade on a 4hr chart.
——————————————–
GBP/JPY:
1. Long @ 162.59 – strong line
This line formed the week before. It is the new 2009 yearly high and it has had a decent reversal. Since this did not break last week I think that a break this week would work very well.
2. Long @ 160.39 –average line
This line formed last week. It seems like an average line. I will trade it but I must admit I am not overly confident with this line. I will be VERY careful with this one especially at the 160.50 psychological level.
3. Short @ 154.82 – strong line
This line formed the a few weeks back and it seems quite good. Lat week it had a second bounce making this line even stronger. This line looks like a great trade opportunity so be ready for it.
TRADING GBP/USD ON A TRIAL BASIS USING ONLY A PORTION OF MY NORMAL POSITION ON ANY GBP/USD TRADE!!
GBP/USD:
1. Long @ 1.6663 – very strong line
This line formed a few weeks back and it is the new 2009 yearly high. This line also formed on the 30th of October 2008 so its a very strong line. Remember though, strong lines can be dangerous as even after they’re broken they can retrace. I am definitely taking this trade but I am not going to jump in with blind confidence that it will be succesful. I will watch it closely like any other trade.
2. Short @ 1.6183 –average line
This line formed last week. It seems like an average line. I will trade it but I must admit I am not overly confident with this line. trade with caution!
3. Short @ 1.5800 – strong lineThis line formed the a few weeks back and it seems very good. The moves to the line and away from it are both very strong.
{ 10 comments… read them below or add one }
Hi Nick,
Should 1.6183 on GBPUSD read “short” instead of “long”?
How you been anyway? Still in Scotland?
Hey Nick just wondering if your stop loss and take profit on the Gbp/Usd will be 50 pips like on the Gbp/Jpy. Thanks Nick
the lines you picked are very correct.i had them on my chart since week before the last,before the market went into a large pips range.6663 and 5800 are highly prominent,however like you said one has to be very careful of taking a trade around 6183.GOOD WORK NICK KEEP IT UP AND HAPPY TRADING TO ALL.
i trade only GU.but normal watch your GJ analysis.you are a cool trader.thanks so much.
Thanks Nick, It will be great to trade GBP/USD,be interesting to see how they develop
Damien
Hi Nick,
Thanks for the update. Since price was already above 1.6183 at the time of your analysis, should we not be shorting it at 1.6183 instead of long.
Thanks
Alps
Hi Nick
I’m really glad that you are publishing your method on the GBP/USD. Could you tell me how many pips your using for your Stop Loss and Take Profit and how many pips you are looking the lines to be broken by for entry?
Many thanks
Nathan
Thanks Nick, Looking forward to see how this week will ride the market wave.
LOL, I did the same thing. Got bored with nothing to do trading wise and started fiddleing with other pairs and looking for scalps. I put down the exact same lines.
Hi, Nick! Looking at the GBP/USD today (29/06) on the 4 hr chart @ 10H. 30 EST ( 15h.30 GMT). I see that it’s in a strong “Ranging” zone and I’m waiting for a breakout. If this pair breaks above Res.(my line) @ 1.6600, would you consider a Long entry at this point?
Just testing my theory.
Keep up the good work.