Tuesday, May 26, 2009

GBP/USD May 26th

GBP/USD right now it is mailto:trading@1.5872; it went down to 1.5860 yesterday; but still hasn't touched 1.6000;
ok last thursday we had a first attempt; but we know it was an holiday in big part of Europe and so thin volumes; friday there was a second one and again a fail; yesterday again down to 1.5848 and up...not really up; during the night down to 1.5860 and up and down;
I am confused; if it wasn't for the two holidays we had I would say that the dollars bears are not strong enough; also against the Euro the dollar is resisting @ 1.4000 area; it was passed, but it was below right after;
Now the last 3x biz days the volume was low and we should consider it;
I think that if today we will see another attempt to break 1.6000 first we should see a correction to 1.5831 area or 1.5808 or 73% of the range was created after the first failing attack to 1.6000;
I do not see any pivot point...resistance @1.5940;
good support @ 1.5750 area, in case it will be breaked we can experiment a violent retracement to 1.5500 area; I would suggest to be really carefull today.

here is my trading plan:
I will buy 1x unit of GBP/USD now @ 1.5854;
I will buy 1x unit of GBP/USD @ 1.5831, if it goes so low;
stop loss per both @ 1.5750 to be moved maybe few pips if the situation suggest it...maybe;
target 1.6000 and over;
if it will fail also today to break 1.6000 I may turn into bear;

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