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
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.