GBPUSD 12-17-06

12-17-06

12-17-06

GBPUSD

There were two opportunities to trade the GBPUSD on Friday. Here are the trade recommendations from Friday's email:

"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."

The area of supply at 1.9671 was not quite reached on Friday morning probably because the EURO reached the 1.3171 area of supply first. If you stuck around, you did get a chance to trade the long entry at 1.9515 a couple of times on Friday. If you are still long, follow the recommendation above again. The same thing will work if you are flat.