GBPUSD 12-15-06

12-15-06

GBPUSD

A long trade in GBPUSD at the range low of 1.9600 was entered yesterday and a partial profit at 1.9640 was taken. The trade was stopped out at breakeven overnight. I am going to trade the range from the 240 chart which is a range bottom of 1.9515 and a range top of 1.9670 for today. The GBPUSD has already put in a weekly low of 1.9464 on Sunday which is a different picture than the EURUSD. Enter a short trade at 1.9671 on a rally this morning with a first target of 1.9620 and a second target of 1.9570. The third target is 1.9515 to reverse to a long position. Move your stop to even after the first target and move the stop to 1.9600 after the second target is reached in case the 1.9570 area of support holds. The 1.9515 area of breakout support should be where the GBPUSD bottoms per the 240 chart if the 1.9570 area of support does not hold. Use a buy stop to enter once the GBPUSD trades below 1.9515 and a 10 pip stop loss after entry with a first target of 1.9560 and a second target of 1.9600. Move the stop after the first target to even, and to 1.9560 after the second target. We will try to ride the GBPUSD back to the top of the range.