GBPUSD 11-26-06

11-26-06

GBPUSD

A week ago Friday, the GBPUSD traded down to a low of 1.8834. The high this past Friday was 1.9350. That is over 500 pips in a week.
If you are trading spot forex, you need to catch a few trend type moves like this to make your year. As a matter of fact, the large currency funds are counting on a year end trend type move to make their year since their performance this year has been very poor.
If the professionals are having a bad year, I suspect that the average spot forex day trader is too.
I would be careful entering this late in the move in case the funds all look for the exits at once.

The last entry I posted for GBPUSD was 1.8944 on 11-19-06. The first and second targets were reached.
I have been trailing the stop loss on the last contract since that entry.
I intend to ride out the remainder of the trend move with this last contract by using a wide stop loss until the GBPUSD runs into an area of supply
large enough to stop the up trend. Move the stop loss to 1.9269 on the last contract to lock in 325 pips. If the GBPUSD rallies past 1.9350, move the stop loss to 1.9306. The next area of supply is 1.9450.